BAT moves to create world’s biggest publicly traded tobacco giant
British American Tobacco has offered to pay $47bn for full control of Reynolds American to create the world’s largest publicly traded tobacco group and put brands like Lucky Strike and Camel under one roof. The unsolicited cash-and-stock offer of $56.50 a share, announced Friday would allow London-based BAT to acquire the 58% of Reynolds it does not already own. But the UK company plans to push for the deal only if Reynolds supports it. BAT said the two sides had not yet held talks, and the Reynolds board was just now reviewing the offer. The move renews the merger frenzy of a fast-consolidating tobacco industry, where companies are fighting for market share and scrambling to develop alternatives to traditional cigarettes. For BAT, the idea is to get a bigger foothold in the US and capitalise on Reynolds’s leadership in electronic cigarettes. The acquisition would be the biggest post-Brexit transaction by a UK group. "The timing is a surprise, but the strategic rationale makes perfe...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.