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BAT Completes Acquisition Of Reynolds American Tobacco

By Publications Checkout
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BAT Completes Acquisition Of Reynolds American Tobacco

British American Tobacco (BAT) has completed its acquisition of the remaining 57.8% of Reynolds American that the company did not already own.

BAT says that it now has a balanced presence in high growth emerging markets and high profitability developed markets, with direct access to the US.

“This is a transformational deal," said Nicandro Durante, chief executive of BAT. "We will take the best of the best from both businesses across all areas to create a stronger, more sustainable company."

Trade Details

Reynolds shares have stopped trading on the New York stock exchange, and shareholders will receive $29.44 for each Reynolds share, and 0.5260 BAT ordinary shares. Meanwhile, BAT will commence trading under the symbol 'BTI'.

The company says that it is committed to a dividend payout ration of at least 65%, and a strong financial profile targeting a solid investment grade credit rating through progressive deleveraging.

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"Work has already begun to realise the projected cost synergies and we are committed to driving continued, sustainable profit growth and returns for shareholders long into the future,” added Durante.

© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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