One of the biggest takeovers could about to take place between British American Tobacco and Reynolds American Inc.
British American Tobacco has offered $47 billion to buy out U.S. cigarette maker Reynolds American Inc. If successful, the buy out would lead to the world’s biggest listed tobacco company.
BAT has valued Reynolds’s shares at $56.50, of which $24.13 would be in cash and $32.37 would be in BAT shares. The company has said the total price for the remaining 57.8 percent of Reynolds would be $47 billion, of which approximately $20 billion would be in cash and $27 billion in BAT shares.
It has been over a decade since British American Tobacco has been in the U.S. markets. This buy out, which is expected to be a cash-and-stock deal, would make BAT the only tobacco company to heavily dominate both America and the international market.
Reynolds announced that it would review the offer and respond in due course.
Disclaimer: We have no position in Reynolds American, Inc. (NYSE:RAI) and have not been compensated for this article.