Sir Tony Blair received private acknowledgment for his involvement in facilitating a substantial takeover by British American Tobacco (BAT) of an Italian state-controlled cigarette entity. This support came at the request of BAT’s then-CEO during a high-profile wedding event.

Recent archive documents released at the National Archives in London illustrate the Blair administration’s close collaboration with Sir Martin Broughton, who was the chairman and CEO of BAT in 2003. The multimillion-euro acquisition targeted Ente Tabacchi Italiani (ETI), which has positioned Italy as a significant market for BAT, known for brands like Lucky Strike and Dunhill.

The correspondence also involved a senior civil servant currently situated in Whitehall.

These documents were retrieved by the Tobacco Control Research Group at the University of Bath and subsequently shared with the press.

Intervention from the Blair government regarding the ETI sale followed a letter from Broughton to Blair in August 2002, in which he detailed BAT’s intentions to pursue a bid for the company.

Now 77, Broughton indicated to Blair that a meeting with Italian Prime Minister Silvio Berlusconi in Madrid was imminent, stating that the prime minister would likely be briefed on BAT’s bid. He requested that Blair raise the matter with Berlusconi, providing key topics for discussion.

This communication was documented in a memo by Sir Matthew Rycroft, who at the time served as private secretary to Blair for foreign affairs and has since ascended to permanent secretary at the Home Office.

The memo was time-sensitive, coinciding with Blair’s attendance at the wedding of Ana Aznar, daughter of Spanish Prime Minister José María Aznar. This event was heavily featured in the media as one of Spain’s most extravagant non-royal weddings since 1950. Blair and his wife, Cherie, were photographed with Berlusconi during the celebration.

Within the memo, Rycroft advised Blair to express acknowledgment of BAT as a leading contender for ETI’s privatization, showing support for their offer, and suggesting the tender’s structure should allow for selective investment without mandatory acquisition of unwanted segments.

Rycroft concluded by stating he would inform Broughton of any outcomes following this discussion.

In July 2003, BAT and its affiliates finalized the €2.3 billion acquisition of ETI, successfully outbidding competitors like Altadis and a group of Italian investors, which positioned BAT as a dominant force in the Italian market.

Shortly after the acquisition announcement, Broughton expressed his satisfaction, acknowledging the strategic and financial importance of the investment in Italy and thanking Blair for his support. He commended the professional assistance provided by the British embassy in Rome.

This correspondence highlights the intricate links between Blair’s Labour government and BAT, one of the largest tobacco firms globally, headquartered in London.

Blair’s administration faced scrutiny shortly after its success in the 1997 elections due to allegations of governmental leniency towards tobacco advertising, notably after a meeting with Formula One impresario Bernie Ecclestone, who had contributed £1 million to the Labour Party.

Currently, Tony Blair’s roles include serving as executive chairman of the Tony Blair Institute for Global Change, which involves work in health policy.

Hazel Cheeseman, the CEO of Action on Smoking and Health, emphasized the need to avoid a return to a time when tobacco industry interests influenced governmental discussions, noting the UK government’s efforts to mitigate tobacco promotion through comprehensive civil service guidelines and funding for anti-smoking initiatives.

In response to inquiries about the newly disclosed documents, a representative from Blair’s institute noted that Blair does not recall the conversation at the wedding but indicated it would be appropriate to address the concerns of a major British enterprise. They reminded that it was Blair’s administration responsible for implementing the smoking ban in the UK.

Broughton reaffirmed the appropriateness of Blair’s support for BAT’s bid and stated that it aligned with sound governmental policy without conflicting with tobacco regulations.

Rycroft has been approached for remarks regarding the situation.

A spokesperson from the government stated that it is standard practice for current administrations not to comment on documents released from previous governments.