WINSTON-SALEM, N.C. — Nearly three months after British American Tobacco first offered a $47 billion bid to take control of Winston-Salem-based Reynolds American, the two entities have come to an agreement.
The buyout, which is worth $49 billion, would create the world’s largest publicly traded tobacco company, according to a news release.
Before the agreement, BAT owned about 42 percent of Reynolds but shelled out a total $49 billion to purchase the remaining 58 percent.
Together, the company will represent some of the biggest selling tobacco brands on the planet, including Pall Mall, Camel, Newport, Lucky Strike, Rothmans and Kent. Combining them all would create the world’s largest listed tobacco company by net sales and operating profit.
“We look forward to bringing together the two companies’ highly complementary cultures and shared commitment to innovation and transformation in our industry,” said Debra A. Crew, Reynolds American’s president and chief executive officer. “British American Tobacco is the best partner for Reynolds American’s next phase of growth, and together the two companies will create the leading portfolio of tobacco and next-generation products for adult tobacco consumers.”
Read the press release here.
#BritishAmericanTobacco to acquire $RAI common stock it doesn’t currently own for $29.44 per share in cash & stock https://t.co/Z1hVpmuitK
— Reynolds American (@RAI_News) January 17, 2017
#BATmerger to create global tobacco co. w/compelling, complementary portfolio of iconic brands & next-gen products https://t.co/Z1hVpmLTli
— Reynolds American (@RAI_News) January 17, 2017