Reynolds American To Merge With British American Tobacco For $49B

18 January, 2017, 01:15 | Author: Celia Hoffman
  • British American Tobacco has agreed to pay almost $50 billion for control of US firm Reynolds American whose brands include Camel and Newport

On Tuesday, British American Tobacco announced that its bigger offer to acquire the remaining stake in Reynolds American that it already did not own was accepted.

British American first tried to buy out the rest of Reynolds in October of past year, offering $47 billion for the rest of the company.

The combined company will have a strong foothold in the United States, and a significant presence in high-growth markets including South America, the Middle East and Africa.

The mega-merger comes after months of talks between the pair and sees BAT, which already owns 42.2% of Reynolds, unveil a higher offer of 59.64 USA dollars (£49.27) a share for the remaining 57.8% of the company.

Formula One: Bottas joins Hamilton at Mercedes
Valtteri Bottas will drive for Mercedes in 2017, while Williams have called Felipe Massa out of retirement as his replacement. Valtteri Bottas talks to Rachel Brookes after being confirmed as Lewis Hamilton's new team-mate at Mercedes .


Driver and two others freed in Kim Kardashian Paris robbery probe
Perez Hilton reported that Kim Kardashian's diamond bling may be returned after several suspects were arrested last Monday. Four men have reportedly been charged over the robbery of Kim Kardashian in her Paris hotel room previous year .


Dodge to stick 'Demon' name on uber-powerful Challenger
" Most cars attempt to be everything to everybody", comments Tim Kuniskis , Head of Passenger Car Brands at FCA North America. The Demon will be the "ultimate performance halo" and will likely produce even more power than the already insane Hellcat.


"If the deal secures shareholder and regulatory approval, it will bring BAT back to the US market more than a decade after it folded its USA subsidiary, Brown & Williamson, into Reynolds in exchange for a large minority stake", report Lauren Fedor and Mehreen Khan for Financial Times. Since BAT would now own all of Reynolds American stock, Reynolds American would become an American subsidiary of BAT.

The new entity would have a big share of the US market along with a major presence in Asia, Africa, South America, and the Middle East, said a BAT spokesperson. The value of that bid had dropped as BAT shares declined following the bid.A merger "creates a stronger, truly global tobacco" business, BAT said. Shares registered one year high at $56.48 and the one year low of $30.35. By making a further investment, the company can now exercise full leadership and control of Reynold's products, their direction, and profits. The stock had a trading capacity of 2.98M shares. The median one-year price target of 11 analysts covering the company is $55.00, which suggests the stock could still rise over -2 percent. Weil, Gotshal & Manges LLP and Moore & Van Allen PLLC are lawyers for Reynolds American's transaction committee and Goldman Sachs Group Inc.is its financial adviser.

Some say that company's increased size and influence could lead others to bolster their own efforts and merge together, allowing them to serve both the traditional and e-cigarette markets that vary in size around the world.

The deal is subject as well to regulatory approval and is expected to be completed sometime during the 2017 third quarter. (RAI) announced it has reached an agreement with British American Tobacco p.l.c. (BAT) where BAT will acquire the 57.8% of RAI common stock that BAT does not now own.

Recommended:

  • Sisters reported missing from Rhode Island in 1985 found alive

    Sisters reported missing from Rhode Island in 1985 found alive

    Then in December, state police said, they received the tip that Yates and the children, now grown women, were living in Houston. Police say an initial investigation revealed the motive might have been a custody dispute between the girls' parents.
    Google Announces Updated Ride Services Experience for Google Maps

    Google Announces Updated Ride Services Experience for Google Maps

    Since its inception Google have always carried on the trend of modifying its Maps app by adding features one after another. Today, Google is introducing a streamlined experience, bringing the ability to book those rides directly from Google Maps .
    North Carolina In Midst Of High-Intensity Flu Season

    North Carolina In Midst Of High-Intensity Flu Season

    Many schools, long term care facilities, and workplaces are seeing people become ill with Influenza, or more commonly called flu. Most experts think that flu viruses are spread mainly by droplets made when people with flu cough, sneeze or talk.
  • Beijing warns Trump: One China 'not negotiable'

    Trump's attacks have strayed far outside Taiwan, beginning with accusations of Chinese currency manipulation, as well as aggressive territory-grabbing in the South China Sea .
    Trump Will Keep @RealDonaldTrump Twitter, Won't Tweet @POTUS - #UnFollowPOTUS45 Movement To Unfollow

    Trump Will Keep @RealDonaldTrump Twitter, Won't Tweet @POTUS - #UnFollowPOTUS45 Movement To Unfollow

    I can go bing bing bing and I just keep going and they put it on and as soon as I tweet it out ... However, he will continue to use it as a platform to combat fake news about him.
    Obama Ending Special Cuban Immigration Residency Policy

    Obama Ending Special Cuban Immigration Residency Policy

    The Department of Homeland Security also ended a parole program that allowed entry for Cuban medical professionals. The policy has been in effect since the 1996 revision of the Cuban Adjustment Act of 1966.
  • Launch of Smallest Satellite-Carrying Rocket in Japan Failed

    Launch of Smallest Satellite-Carrying Rocket in Japan Failed

    It was created to transmit images of Earth's surface for about a month before re-entering the atmosphere and burning up. JAXA's launch was opposite to Space X launch that sent falcon 9 rocket with 10 satellites into the space.
    Lone refugee children arriving in Italy by sea doubles in 2016

    Lone refugee children arriving in Italy by sea doubles in 2016

    Usually, bad weather and rough seas deter Libyan-based smugglers from launching overloaded boats full of migrants bound for Italy. The Italian Navy was searching for survivors from the vessel, which was believed to be carrying up to 110 people.
    Trump's Transition Approval Rating Is Historically Low

    Trump's Transition Approval Rating Is Historically Low

    A month ago, Americans were evenly split at 48 percent apiece on the question of how Trump was handling the transition. One clue as to the reason for this may be found in Trump's choice of Cabinet appointments.
  • Japanese tapeworm detected in wild salmon

    Japanese tapeworm detected in wild salmon

    Since salmon is packed and transported on ice, but not frozen, the larvae of the Japanese tapeworm might have survived the trip. The recent updates tell about the tapeworm in the fish which can infect your health to a major context.
    Stevan Jovetic stunner ends Real Madrid unbeaten run

    Stevan Jovetic stunner ends Real Madrid unbeaten run

    Jovetic bagged a goal as his side took a 3-1 lead, but some heroics from Sergio Ramos and Karim Benzema kept the run alive. With the victory, Sevilla narrow the point gap between them and Real to one.
    SpaceX Completes Successful Rocket Launch

    SpaceX Completes Successful Rocket Launch

    An onboard camera captured the full descent of the rocket, which appeared to land right on the "X" in the center of the barge. Friction from the carbon overwrap, or even breaking carbon fibers, may have provided the spark needed to create the fireball.


Popular

Victoria Beckham 'blocks' Spice Girls reunion tour
Although Victoria Beckham and Melanie C declined to rejoin the group, the remaining three bandmates made a decision to go ahead and reform.

Takata to pay $1.4b over faulty airbags
US officials have also ordered that an independent monitor look after the company to make sure it complies with regulations. Takata also knew that certain inflators had sustained failures, including ruptures, during testing.

Payet putting West Ham in sticky situation
He's got a contract with us, a long contract and I'll say what I always say: "we don't want to sell him". "Let's get serious. Payet played two seasons for Marseille but, at the time of his transfer, said he was unhappy to be sold and wanted to stay.

U.S. troops arrive in Poland, boosting North Atlantic Treaty Organisation defense in Eastern Europe
In Moscow, Vladimir Putin's spokesman Dmitry Peskov said: "We perceive it as a threat". Russian Federation clearly wasn't happy with the deployment.

Red seadragon caught on camera in the wild for first time
Meanwhile, the bright red hue, they note, serves as camouflage in the deeper dimly lit waters where it lives. The footage was published Thursday in a study featured in Marine Biodiversity Records .

Obama to ease Sudan sanctions as he leaves office
The country's long-time leader President Omar al-Bashir is wanted by the International Criminal Court for War Crimes. Sudan welcomed the USA decision, saying it was a "positive and important" development in relations with Washington.

Arizona trooper shot near Tonopah
After arming himself, the passerby confronted "the suspect, giving him orders to stop assaulting the officer", said Milstead. Milstead said he had not yet had a chance to speak to the man, who was traveling with his wife to California at the time.

On Twitter, Trump backs LL Bean against boycott
Bean"??? The donations sparked a movement by anti-Trump group Grab Your Wallet, which called for a boycott of L.L.Bean last week. Bean has always been a financial supporter of Republican causes and even ran for Congress twice, unsuccessfully.

Stonehenge tunnel route from Department for Transport angering a lot of people
The Department for Transport has confirmed the A303 will be "transformed" as part of a £2bn ($2.4bn) investment in the south-west. However, some campaigners have expressed concern that the roadbuilding project could irreparably damage the prehistoric monument.

BSF submits another report; says tinned food used
The BSF official said the jawan (Yadav) in the past has been punished four times for committing indiscipline. He said he was transferred from the BSF camp to the headquarters and had been assigned a plumber's duty.