British American Tobacco Ditches Lazard and Goldman Sachs for New Advisers

British American Tobacco has ended relationships with long-time corporate advisers Lazard and Goldman Sachs, opting for new partners HSBC and Deutsche Bank. The switch comes as the company seeks to expand its global operations, particularly in Asia, where it faces challenges with bureaucracy. BAT aims to invest £800 million in manufacturing and distribution businesses in China, the world's largest tobacco market.

Key Takeaways:

• British American Tobacco has dropped Lazard and Goldman Sachs as corporate advisers, replacing them with HSBC and Deutsche Bank.
• The change came into effect a few weeks ago, with Goldman Sachs already leaving BAT and Lazard finishing its work.
• HSBC's global presence, particularly in China, could be crucial in helping BAT navigate Asian bureaucracy.
• BAT plans to invest £800 million in manufacturing and distribution businesses in China, the world's largest tobacco market.
• The change marks an important step for new CEO Paul Adams, who is seeking to put his mark on the company.
• Both Lazard and Goldman Sachs were instrumental in the sale of BAT's Brown & Williamson business to RJ Reynolds 18 months ago.
• BAT wants to expand its global operations to match its peers, with a wider geographic business spread.
• BAT has employed new advisers to access broader global operations and overcome Asian bureaucracy.

Statistics:

• £800 million: The amount BAT plans to invest in manufacturing and distribution businesses in China.
• 18 months: The time frame in which BAT sold its Brown & Williamson business to RJ Reynolds.
• 2 decades: The length of time Lazard and Goldman Sachs have been BAT's corporate advisers.
• 100: The number of years BAT has been in business, making it a FTSE 100 company.

Sources:

• The Times, 2005.