British American Tobacco Brush Off Brexit Fears And Plan $47bn Swoop For American Tobacco Company
British American Tobacco, the giants who own Lucky Strike, Pall Mall and Rothmans have launched an audacious $47bn bid to buy its US partner Reynolds American.
Reynolds American is the second biggest American tobacco company behind the worldâ€™s biggest, Altria, and British American Tobacco already has a 42.2% stake in its interests.
The bid is one of the biggest UK bids for a foreign company in recent years, and would make British American Tobacco the biggest cigarette company in the world.
â€œThe proposed merger of our two great companies is the logical progression in our relationship. It offers all shareholders a stake in a stronger, truly global tobacco and next-generation products company,â€ said Nicandro Durante, chief executive of British American Tobacco.
Itâ€™s still unclear as to whether Reynolds will accept the bid from British American Tobacco of $47bn.
A share in British American Tobacco fell by 2.8% to Â£46.66 yesterday, whilst shares in Reynolds were up 14% on Wall Street.
The economic activity surrounding tobacco continues to surprise. It has recently emerged that investors are snapping up tobacco shares, despite crippling tax increases.