Biosyntec to refrain from acquiring ZTL
2010-02-08
Biosyntec, the French
biotechnological company, has abandoned the acquisition of a controlling stake in
Zaklady Tytoniowe Lublin (ZTL), the state-owned tobacco company. In September 2009 the French company signed a conditional contract on the purchase of a 60% stake in ZTL for around PLN 24m (€6m), however, it did not keep the deadline to pay for the acquisition.
Biosyntec had planned to produce a new kind of cigarette filter at ZTL which would reduce the risk of cancer caused by cigarette smoke by 80%.
At present, the Treasury is considering other options for the privatisation of the producer. However, according to industry representatives, finding a new investor for the Lublin-based producer could be difficult because of the deteriorating situation on the tobacco market in Poland. Furthermore, because of the higher excise duty on loose tobacco, in the production of which ZTL specialises, demand for such tobacco is significantly declining in Poland.
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