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Agreement between CETARSA and British American Tobacco (BAT) for the purchase of Spanish tobacco

Agreement between CETARSA and British American Tobacco (BAT) for the purchase of Spanish tobacco

29/04/2014 - Madrid
Press release CETARSA

Compañía Española de Tabaco en Rama (CETARSA) and British American Tobacco (BAT) have reached an agreement as a result of which, during the next two seasons the British manufacturing group, which is the second manufacturer in the world, will purchase Spanish tobacco from CETARSA.

CETARSA’s spokespersons have highlighted the importance of this undertaking, as a result of which BAT will include again Spanish tobacco within its products. This agreement is the result of several months of negotiations between BAT’s and CETARSA’s managerial teams. The above agreement will entail the purchase of around 1,500 Tons of un-processed tobacco.

Thanks to this agreement, both companies are engaged in contributing to the sustainability of the tobacco industry through their support to a key element of the value chain, as is tobacco’s cultivation and first processing. These activities, which are focused to a large extent in Extremadura, entail a very significant part of the 56,000 jobs which the tobacco’s industry generates in Spain.

Finally, both companies pointed out the need for a stable legal and tax framework, both for the development of the activity of this industry and for tax collection. Equally, they expressed their concern for the strong increase in contraband activity which is taking place and for the consequences which the recently passed European Directive on Tobacco Products could have on our country, depending on how it is transposed into local law.

Grupo SEPI

CETARSA belongs to Grupo SEPI, a corporate holding which includes a total of 16 state-owned companies in which it has direct, majority shareholding participations - with a workforce of 75,000 professionals in 2012 -, the Spanish state-owned television and radio corporation, Corporación Radiotelevisión Española - which is attached to SEPI-, and one public foundation. Equally, SEPI has direct minority shareholdings in a further nine companies, and indirect shareholdings in more than one hundred companies.

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