ITC stake strategic investment, not financial: BAT chief executive Marroco

British American Tobacco (BAT) Chief Executive Tadeu Marroco has clarified that the company's stake in ITC is a strategic investment rather than a purely financial one. This statement comes after BAT sold a 2.5 percent stake in ITC on May 28, generating net proceeds of ₹12,941 crore. Despite the sale, BAT maintains a significant presence in ITC with a 22.93 percent holding, underscoring its long-term commitment to the Indian conglomerate. The sale has prompted discussions about BAT's intentions, but Marroco emphasized that the decision aligns with broader strategic objectives rather than immediate financial gains. By retaining a substantial stake, BAT aims to leverage ITC's diverse portfolio spanning FMCG, hotels, paperboards, and agribusiness, which complements BAT's core interests in the tobacco sector. This alignment is expected to foster mutual growth opportunities and enhance shareholder value over time. Market analysts note that BAT's reduced stake might provide ITC with greater operational flexibility while still benefiting from BAT's global expertise. The move reflects a nuanced approach to portfolio management, balancing immediate capital needs with long-term strategic alliances. As global markets evolve, such strategic investments are crucial for companies like BAT to remain competitive and adaptive to changing industry landscapes.

— Authored by Next24 Live