Honda Buys 45% of BAR; Richards Leaves Team

Honda has agreed to buy a 45 percent holding in the BAR Formula One team, the revelations of the 2004 season.

Owners British American Tobacco (BAT) said in a statement on Friday that the Japanese car giant, the team's engine partner, would form a joint venture company with them to replace the existing BAR ownership structure.

No financial details were available but BAT will be left with a 55 percent controlling stake.

The two companies have made an offer to buy three small shareholders' 10 percent stake and are waiting for their response.

BAT said that if the shareholders refused to sell, BAT would seek the appointment of administrators to the holding company.

"The new joint venture company then expects to acquire, from the administrator, the shares in British American Racing GP Ltd which operates the team and which is the holding company's principal asset," it said.

"The day to day activities of the team will not be affected by this process."

Sources said team boss David Richards will leave BAR one year before the end of his contract and will be replaced by managing director Nick Fry, who becomes chief executive. BAR was due to make a separate announcement later.

BAR's Jenson Button was often the only rival to the dominant Ferrari drivers in the 2004 season when BAR finished runners-up in the Constructors' Championship.

Tobacco Leaf

However, despite Britain's Button finishing second four times, BAR have yet to win a race in 101 starts.

BAR was formed in 1997 by Craig Pollock, Reynard Racing Cars and British American Tobacco, who provided the bulk of the financing. After buying the Tyrrell team, they made their Formula One debut in 1999.

Pollock is one of the three minority shareholders targetted by BAT and Honda. The others are Reynard and Rick Gorne.

Racing at first in the livery of BAT's 555 and Lucky Strike cigarette brands, while the team's motif was a speeding tobacco leaf, they failed to score any points in a tough first Championship.

Honda came on board in 2000, the Japanese carmaker stepping up its involvement in the team two years later with a new agreement that included chassis development.

In 2003, Honda became an official sponsor of the team as well and this year their partnership with BAR was extended until at least the end of 2007.

"This is a natural extension of our relationship with BAR and is an important step for both partners," said Honda Motor Company Managing Director Takanobu Ito on Friday.

Five of the 2004 Formula One teams - Ferrari, McLaren, Renault, Jordan and BAR - were substantially backed by cigarette brands this year.

A European Union law bans tobacco advertising from mid-2005 with a worldwide ban due to be enforced by the end of 2006.

The different dates for the bans have caused confusion in Formula One where some sponsorship contracts go beyond 2005.