British American Tobacco Agrees to Pay $49 Billion to Take Full Control of Reynolds American
January 17 2017 - 2:57AM
Dow Jones News
By Ian Walker
LONDON-- British American Tobacco PLC on Tuesday said it had
agreed to pay $49.4 billion for the 57.8% of Reynolds American Inc.
that it doesn't already own.
BAT is paying $29.44 in cash and 0.5260 of an ordinary share for
the stake, valuing its U.S. peer at more than $85 billion.
The deal comes after BAT said in October that it had made an
offer for Reynolds valued at $56.50 a share, or about $47 billion
for the stake it didn't own.
The British firm, which houses Dunhill, Lucky Strike and Pall
Mall among its brands, expects at least $400 million cost savings
from the deal, which is expected to benefit both earnings and
dividends in the first year.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
January 17, 2017 02:42 ET (07:42 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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