Wednesday, July 9, 2025
23.2 C
Lagos

Tobacco: BAT, Reynolds Seal $49bn Mega Merger

Two of the world’s biggest cigarette companies are being rolled into one.

British American Tobacco (BAT) said yesterday that it’s agreed to pay $49.4 billion to take control of Reynolds American (RAI), the No. 2 U.S. tobacco company.

The two cigarette giants hold some of the biggest selling brands on the planet, including Pall Mall, Camel and Newport. Bringing them together would create the world’s largest listed tobacco company by net sales and operating profit, according to BAT.

It already owns about 42% of Reynolds and launched a $47 billion bid in October to buy the remaining 58%. But it had to go higher to win the approval of Reynolds’ directors.

The new cash-and-stock offer of $59.64 per Reynolds share is about 26% above the price the stock closed at before the original offer in October. If shareholders and regulators approve the deal, the two companies expect it to go through in the third quarter of this year.

Their existing strong ties mean they already share some brands. For example, Reynolds has the rights to Pall Mall in the U.S., and BAT has them for more than 100 international markets.

The deal will also enable the two firms to pool their resources in the growing industry for next-generation tobacco products, like e-cigarettes.

Based in Winston-Salem, N.C., Reynolds made headlines last year for bringing in John Boehner, the heavy smoking former House speaker, as a director.

spot_img
spot_img
spot_img

Hot this week

Tinubu Tax Reforms: Transformative Policy Deployment for Nigerian Economy in a Generation – IMPI

The Independent Media and Policy Initiative (IMPI) has said...

Udeme Ufot to Chair QEDNG Creative Powerhouse Summit

Mighty Media Plus Network Limited, publishers of the online...

NESG-Stanbic IBTC Business Confidence Monitor: Easing Macro-economic Pressures, Favorable Business Climate

The Business Confidence Monitor (BCM) is the flagship survey-based...

Universal Insurance, NHIA, PTAD, Rite Foods Sponsor NAIPE 2025 AGM

The Universal Insurance Plc, National Health Insurance Authority (NHIA),...

MTN, 9mobile Ink National Infrastructure Partnership Deal

L-R: Abolaji Idowu, Chief Financial Officer, 9mobile; Omotola Ojutayo,...

Topics

Inspen Retirement Radio Program Debuts on Naija FM

Inspen Media has launched a pidgin programme on radio,...

AMCON Urges Nigerians to Patronise Peugeot Automobiles

Mr. Ben Daminabo, Head, Subsidiaries, Asset Management Corporation of...

Global Airlines Financial Monitor [June]

Key Points: · The latest financial results continue to point...

NPA Commissions Ultra-modern Break Lounge at Lagos Ports Complex

The Management of the Nigerian Ports Authority has...

Aeromexico to Host 73rd IATA AGM in Cancun

The International Air Transport Association (IATA) announced that Aeromexico...

Afreximbank: The $6bn War Chest to Strengthen Food Security in Africa

The African Export-Import Bank (Afreximbank) has staked US$6 billion...

Huawei Reports $5.7bn Profit in 2O15

China's Huawei has reported a one third jump in...

Main One Upgrades Network Infrastructure for Superior Performance

Main One Cable Company has upgraded the lit capacity...
spot_img

Related Articles

Popular Categories

spot_imgspot_img