Amer Group negotiates the possibility of withdrawing from its tobacco business
Amer Group Plc is reviewing the possibility of withdrawing from its non-core tobacco business and initiating employer/employee negotiations concerning Amer Tobacco Ltd in Finland.
Amer Tobacco Ltd has an exclusive right to produce and sell Philip Morris cigarettes in Finland. Transferring the license to a third party is not possible without permission from the licensor. According to the licensing agreement, the license can be terminated at the end of 2005 at the earliest, if not otherwise agreed between the licensee and the licensor.
Amer Group is negotiating with Philip Morris the possibility of terminating the license agreement prematurely. Within the framework set by the employer/employee negotiations, the withdrawal could take place during the spring of 2004.
"Our strategy is to develop our sports equipment business and to become the number one sports equipment company in the world. We think that now is the right time to negotiate the possibility of withdrawing from the tobacco business", says Mr. Roger Talermo, President and CEO of Amer Group. "We estimate that the profitability of the tobacco business will decline due to the enlargement of the European Union, among other reasons."
Negotiations with staff will commence on 26 November 2003 and will apply to Amer Tobacco Ltd's entire workforce, totaling approximately 320 persons.
In 2002 Amer Tobacco reported net sales of EUR 114.4 million.