Honda to own BAR following BAT stake sale.

British American Tobacco has confirmed that it is to sell its share of the BAR Formula One team, following the recently imposed ban on tobacco advertising within the European Union.

The acquisition was announced at a press conference in Tokyo earlier today, ahead of Honda's home grand prix at Suzuka this weekend, a race that will also mark the company's 100th grand prix with the BAR team.

The conglomerate's withdrawal has been mooted for months, and an agreement has now been reached to dispose of its 55 per cent stake to the team's engine partner Honda. The sale is expected to take effect by 31 December, and will increase Honda's ownership of the team to 100 per cent. The Japanese giant already owns a 45 per cent shareholding, which it acquired at the start of 2005, when the team was put into voluntary administration to sideline a number of minority shareholders - including former co-owner/team principal Craig Pollock.

The team will continue to operate from its current base in Brackley, which works closely with Honda Racing Development Ltd in Berkshire. The two parties are currently in the final year of a initial three-year contract to jointly develop technologies, including an ongoing chassis project, and the deal has since extended through to the end of the 2007 season.

"After discussing Honda's future F1 participation, we have decided that the company should own 100 per cent of the BAR team," communications officer Hiroshi Oshima explained, "From next season, we will be even more energetic in our F1 activities, working hard as a team in order to improve our technology, develop our young engineers and achieve our goal of winning the world championship.

"We greatly appreciate the partnership with BAT, which has managed the team with us until now, and we wish it the best of luck in its future endeavours."

Despite its decision to sell its share of the team, BAT has said that it intends to remain as title sponsor, through its Lucky Strike brand, for the 2006 season, but will then honour its long-standing commitment to drop Formula One sponsorship from its marketing plans, as agreed with International Tobacco Marketing Standards, to which BAT voluntarily subscribed in 2001.

"It will be sad to end our association, but it is immensely satisfying to leave the team in the competent hands of Honda, who are proven winners in the sport," marketing director Jimmi Rembiszewski commented, "We wish Honda every success for the future and look forward to our last year of sponsorship."

There has been mention of the team being renamed to reflect Honda's total ownership, although no announcement was forthcoming on that front during the press conference.

"We want to race as Honda, and we want to challenge for the championship - we want to take the team in a better direction," Oshima told Reuters, "Basically, it will be 100 per cent Honda from 2006.

"We will complete the buy-out by the end of the year, and the name will be Honda something-or-other, but we will have to talk with the sponsors before making that decision."