Tobacco Giant BAT Buys Out US Firm Reynolds For $49.4bn

Tobacco giant BAT buys out US firm Reynolds for $49.4bn

LONDON, , (Pakistan Point News - APP - 17th Jan, 2017 ) - British American Tobacco agreed Tuesday to pay almost $50 billion (47 billion Euros) for control of US firm Reynolds American, creating the world's largest listed tobacco company. BAT will purchase the 57.8-percent of Reynolds American that it does not already own, BAT said, unveiling an improved cash-and-shares offer after the US giant had rejected its previous $47-billion bid. The deal brings together a raft of global brands, including BAT products Lucky Strike, Rothmans and Kent, and Reynolds' brands such as Newport, Camel and Pall Mall.

The combined company will have a strong foothold in the United States, and a significant presence in high-growth markets including South America, the middle East and Africa. BAT added it would also create a "truly global" business for fast-growing next generation products (NGP) like e-cigarettes or vaping. "We are very pleased to have reached an agreement with ... Reynolds and we look forward to putting the recommended offer to shareholders," said BAT Chief Executive Nicandro Durante in a statement. He added that the blockbuster deal "will create a stronger, global tobacco and NGP business with direct access for our products across the most attractive markets in the world". "We believe this will drive continued, sustainable profit growth and returns for shareholders long into the future."