British American Tobacco Plc has agreed to fully take over Reynolds American Inc. on terms that are improved from an initial bid made last year. The takeover would create the world’s largest publicly traded tobacco company and combine BAT’s presence in developing countries, where anti-smoking campaigns are not as strong as in the U.S. and Europe, with Reynolds’ almost exclusive focus on the U.S. BAT said Tuesday it will buy the 57.8 percent of Reynolds it does not already own.
Category: British American Tobacco plc
BAT agrees to buy Reynolds for $49 billion
British American Tobacco has agreed a $49.4 billion takeover of U.S. rival Reynolds American Inc , creating the world’s biggest listed tobacco company after it increased an earlier offer by more than $2 billion. BAT, which already owned 42 percent of Reynolds, will pay $29.44 in cash and 0.5260 BAT shares for each Reynolds share, it said, a 26 percent premium over the price of the stock on Oct. 20, the day before BAT’s first offer was made public.
BAT agrees to buy Reynolds for US$49 billion
British American Tobacco has agreed a US$49.4 billion takeover of U.S. rival Reynolds American Inc , creating the world’s biggest listed tobacco company after it increased an earlier offer by more than US$2 billion. FILE PHOTO – Pall Mall cigarettes are seen after the manufacturing process in the British American Tobacco Cigarette Factory in Bayreuth, southern Germany, April 30, 2014.