Loobobilly New Zeeland News- British American Tobacco offers to buy Reynolds in US$47 billion deal

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British American Tobacco proposes to merge with rival cigarette company Reynolds.

British American Tobacco (BAT) has offered to buy Reynolds American in a 65.5 billion (US$47b) cash-and-stock deal.

The London-based company offered to buy the 57.8 per cent of Reynolds it doesn't already own for the equivalent of US$56.50 per share. Reynolds shareholders would receive US$24.13 in cash and 0.5502 of a BAT share for each Reynolds share.

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#BritishAmericanTobacco proposes merger with Reynoldshttp://ow.ly/26jo305oogD 

11:09 PM - 20 Oct 2016

 
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BAT says the deal values the Winston Salem, North Carolina-based company, at US$93 billion and that the offer price represents a 20 per cent premium over Reynolds' closing price.

BAT Chief Executive, Nicandro Durante, says the merger "is the logical progression in our relationship and offers all shareholders a stake in a stronger, truly global tobacco and Next Generation Products company.''

The deal brings together brands such as BAT's Lucky Strike and Reynolds' Camel.

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