LONDON (Reuters) - British American Tobacco (BATS.L) has offered to buy out U.S. cigarette maker Reynolds American Inc RAI.N in a $47 billion takeover that would create the world’s biggest listed tobacco company with brands including Newport, Lucky Strike and Pall Mall. “BAT is proud of its track record of consistent delivery for shareholders and this transaction would further strengthen that delivery in the future.”

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The offer would value the 57.8 per cent stake at $56.50 dollars a share, representing a 20 per cent premium against yesterday’s closing price of Reynolds shares. The total price for the remaining 57.8 per cent of Reynolds would be $47-billion, of which approximately $20-billion would be in cash and $27-billion in BAT shares. The proposed merger of our two great companies is the logical progression in our relationship and offers all shareholders a stake in a stronger, truly global tobacco and next generation products company.”



Under US law, as a part-owner of Reynolds, BAT was required to announce its offer immediately and before the Reynolds board had responded. The company currently employs more than 50,000 people globally and sells its products across 200 markets.
British American Tobacco offers to buy out U.S. cigarette maker Reynolds American Inc in a $47 billion takeover that would create the world's biggest listed tobacco company.