Lucky Strike maker backs London in boost for City

THE tobacco giant behind Lucky Strike has committed to the London stock market despite Rishi Sunak’s plan to ban smoking in the UK.

Tadeu Marroco, chief executive of British American Tobacco (BAT), branded the idea of shifting the company’s listing from London to New York a “distraction”.

He told the Financial Times he was “not sure the benefit would be as evident as some suggest”, adding: “There is nothing to suggest thatit’s a no-brainer to go to the US.”

BAT’S commitment comes even as the Prime Minister pushes ahead with plans to make Britain a smoke-free nation. The proposed laws, which were unveiled at the Conservative Party conference in October, would phase out smoking by increasing the legal age of sale by one year every year from 2027.

The plans were modelled on a similar policy in New Zealand, though this has since been ripped up by the country’s new coalition government.

Mr Marroco’s comments will also provide a much-needed fillip to the London Stock Exchange, which is battling against an exodus of companies defecting to New York.

The tobacco chief acknowledged that London was struggling to attract listings, but cited advantages of remaining in the UK. He said: “If you have a shareholding of a UK [listed company] and you are located outside, you don’t pay withholding tax on your dividends, which is different from the US.”

The comments mark a rebuke to GQG Partners, a major BAT investor that last year urged the company to move its listing. Rajiv Jain, chairman and chief investment officer of GQG, pointed to the stronger share price performance of Us-listed rival Philip Morris International, in which the investment firm also holds a stake.

GQG is said to have sold out of BAT last summer after becoming frustrated by its refusal to relist in the US.

Mr Marroco said there were “many other things” BAT needed to focus on, including reversing a fall in cigarette sales in the US and developing smokefree alternatives.