British American Tobacco PLC announced on Friday a $47 billion offer to purchase the remaining part of the tobacco company Reynolds American Inc. BAT, owner of TDR, which already holds 42.2 percent of the second-largest American tobacco company founded in 2004, offered $56.5 per share, according to WSJ. Of this amount, $24.13 would be paid in cash, and the remaining $24.13 in shares.
BAT’s CEO Nicandro Durante stated that this deal would create a U.S. market leader and the largest publicly listed tobacco company by net revenue and operating profit.
If the agreement is reached, the value of Reynolds American Inc., led by Susan Cameron, will rise to $81.3 billion. Reynolds American Inc. owns the tobacco companies R. J. Reynolds and Santa Fe Natural, as well as American Snuff (formerly Conwood) and Niconovum AB.
BAT also announced on Friday that it performed well in the first nine months of this year, achieving an 8.1 percent year-on-year increase in cigarette sales revenue, with its largest brands – Dunhill, Lucky Strike, Pall Mall, and Rothmans – seeing a 9.8 percent increase in sales. It is one of the largest multinational tobacco companies, with over 200 of its own brands, employing more than 50,000 people, and selling 663 billion cigarettes produced in 44 factories worldwide.
