British American Tobacco buys Croatian company

British American Tobacco closed the purchase of the maker of cigarettes of TDR Croatian Adris Grupa by 550 million euros to increase its scale in Croatia, Bosnia and in Serbia.
As tobacco consumption declines in many Western markets, cigarette companies are seeking to expand into new markets or consolidate operations to reduce costs and raise profits.
British American, second largest international manufacturer of cigarettes in the world, also made an offer recently to close the capital of Souza Cruz, largest company in the sector in Brazil.
The Adris, which also operates in the sectors of tourism and insurance, said in September that can seek a partner for its cigarette unit, since the increasing global competition has affected your business.
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The Adris said the BAT assumed the obligation to preserve for at least five years the production of tobacco in the Istrian peninsula, in the Northern Adriatic Sea, or to ensure 50 million euros in the case of additional anticipated closure of the factory in Kanfanar.