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."
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.
"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.