British American Tobacco (BAT) is set to close its operations in the Philippines by the end of this year following its failed attempt to buy local cigarette maker Mighty Corporation, the Manila Bulletin reported.

BAT reportedly confirmed the shuttering of its Philippine operation to the newspaper, saying it has been “operating in a difficult environment for some time”. BAT had reportedly been in advanced talks to acquire Mighty Corporation before Japan Tobacco agreed to purchase the tobacco business of Mighty Corporation for PHP 46.8 billion (EUR 772 million) in August.
“JTI’s acquisition of Mighty was a really big, big letdown for BAT because they were already at an advanced stage when the Japanese came at the eleventh-hour,” the newspaper quoted an unnamed source as saying.
BAT plans to end its operations in the country on December 31, the newspaper said.