BAT offers to buy US tobacco firm Reynolds

Maxine SotoOct 22, 2016

BAT Chief Executive Nicandro Durante said the deal would create the US market leader and the world's largest listed tobacco company by net turnover and operating profit. The $47 billion purchase price would include $20 billion in cash and $27 billion in BAT shares.

The FTSE 100 company has proposed paying $47bn (£39bn) for the 57.8% of the shares it does not already own in United States rival Reynolds.

Cravath Swaine & Moore and Herbert Smith Freehills (HSF) are advising FTSE 100 giant British American Tobacco (BAT) on its $47bn (£38.4bn) approach for Reynolds American.

He noted that Reynolds had further strengthened its business by acquiring Lorillard past year for $25 billion and that the combined companies would a "world-class pipeline" of e-cigarette and other vaping products.

New York Times dares Trump to sue
At his campaign event Friday afternoon, Trump continued to insist that all of the accusations now arising are totally false. She said Trump set up meeting at a hotel room in Beverly Hills, where he greeted her with an "open-mouthed kiss".

A governance agreement between the two companies requires backing from the Reynolds directors who weren't appointed by BAT, he said.

The stock increased 3.8 per cent in early London trade on Friday, giving it a market value of £93bn.

"BAT shares reversed their sharp gains to trade lower as arbitrage trades were going on, with BAT being sold off and Reynolds being snapped up on the back of the merger news", Jawaid Afsar, senior trader at Securequity, said. The British company has owned stakes in Reynolds since 2004.

The combined company would create a massive tobacco powerhouse with a market cap of over $170 billion. The company is ironically aiming to make $400m worth of cost-savings through the deal, which comprises assets such as Reynolds' production facility in Tobaccoville, North Carolina. All big tobacco firms are investing in e-cigarettes and other vapor-based products, to diversify.

Iowa's unemployment rate unchanged at 4.2 percent
Significant over-the-year rate increases occurred in the West North Central and West South Central (+0.3 percentage point each). Leisure and hospitality hired 2,000, up 0.9%. "The start of the school year is always a big employment driver".

BAT expects the deal to lead to relatively modest cost savings of $400 million, but said the deal would give it a major position in the US tobacco market in addition to high-growth emerging markets across South America, Africa, the Middle East and Asia.

BAT has always been rumored to be interested in buying rival Imperial, but a deal to acquire Reynolds likely would take that off the table, at least for now.

"We expect this deal to go through quickly as there are no antitrust issues and the two boards are on friendly terms", said analysts at Citi. "The main reason for the deal is for BAT to be in the United States", a company spokeswoman told AFP, noting that the company did not have a direct presence there.

Nigel Driffield, professor of worldwide business, Warwick Business School: "The planned takeover of Reynolds by BAT represents the final step of a process that the two companies embarked on some time ago". BAT is being advised by Centerview, Deutsche Bank and UBS. Year-to-date revenue has risen by 8.1% at constant exchange rates, or 6.2% on an organic basis.

Indians carry 2 catchers, 2 lefties on ALCS roster
Bauer's incident is being described as a "non-baseball related injury", specifically caused from an attempt to fix a drone . You've got to throw quality strikes right out the get-go, and then make sure you stay ahead.

Related Articles:

« Previous article
Next article »

Popular Pages

Gov. Charlie Baker not planning to take part in early voting
But, this can be done at the voting location, either the County Clerk's Office or polling station. The Republican told reporters Thursday that he's a fan of waiting until Election Day to vote.

Samsung Offering Note 7 Exchanges, Refunds at Some US Airports
In September Samsung issued a recall of the original exploding devices after dozens of them caught fire or emitted smoke. An airline flight ban on Samsung's Galaxy Note 7 is spreading fast after reports some phones have caught fire.

Cleveland opens ALCS with 2-0 win against Toronto; NLCS starts tonight
As soon as it went out, I put my hands out and said, 'Thank God.' And I looked at the dugout and everybody was going insane. The 25-year-old hopped off the field without putting weight on his right leg and went straight to the Blue Jays clubhouse.

AT&T Considering Halting All Samsung Galaxy Note 7 Sales and Replacements
This move comes in the aftermath of Samsung's replacement Note 7 unit catching fire on a Southwest plane . Earlier today, we reported that Sprint users could get replacement devices for their "safe" Note 7s.

Airlines add fire containment bags for overheated mobile devices
Three US airlines will now provide fire-containment bags which can be used to seal up an overheating smartphone or other device. Delta Air Lines noted Thursday on a call with investors that it too would be adding such bags.

Call for a Welsh referendum if Scotland votes to leave the UK
After last week in Birmingham, there can be no doubt - the choice we face has never been so stark. The Scottish Greens welcomed Sturgeon's announcement of a consultation on a new referendum bill.

Cheer up, Americans, say Canadians _ you're great
Yet another fan tweeted: "America, you gave the world cherry Coke & the internet & the Golden Girls. "That's why we created the 'Tell America it's great' campaign ".

Rockstar's Red logo generates more buzz than most game releases
Red Dead Redemption never made it to the PC, probably because the actual game code was apparently a bit of a mess. The original " Red Dead Redemption " title was released for the Xbox 360 and PlayStation 3 consoles in May 2010.

Depeche Mode, ELO, Journey among other first-timers
The top five artists from the public vote will be counted along with the other ballots. It also doesn't help the Hall's stuffy reputation.

Apple will finally unveil new Macs on October 27
The company is also phasing out the 11-inch MacBook Air when the new Pros are announced, but the 13-inch model will stick around. We already heard previous year from Apple CEO, Tim Cook, about the iPad Pro that it was the "most powerful one ever created".