Mega acquisition in sight in the tobacco sector. The British group Bat has announced that it intends to shell out 47 billion dollars for acquire the remaining 57,8% of the American rival Reynolds, of which it already holds 42,2%: it therefore aims to acquire 100% of the other company and thus become a leader in the USA and in the electronic cigarette sector.
The offer for Reynolds, which also includes Camel and Newport among its brands, it is partly cash and partly in shares and will value the US company at approximately 93 billion dollars overall. Bat, which owns Dunhill, Lucky Strike, Kent and Rothmans brands, said it had presented the proposal to Reynolds' board, but no formal negotiations had so far begun.
The British Group has bid $56,50 for each Reynolds share, of which $24,13 in cash and the rest in treasury shares, equal to a 20% premium over the closing day of Reynolds stock prices on Wall Street. Bat has been a shareholder since 2004 of Reynolds, which ranks second in the US tobacco market and last year took over the number three in the US, its rival Lorillard (brand Newport).
