British American Tobacco Offers to Buy Reynolds in $47 Billion Deal | NBC4 Washington

British American Tobacco Offers to Buy Reynolds in $47 Billion Deal

The deal brings together brands such as BAT's Lucky Strike and Reynolds' Camel

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    AP
    In this Tuesday, July 15, 2014, file photo, Camel and Newport cigarettes are displayed for sale in Doral, Fla. British American Tobaccos has offered to buy cigarette maker Reynolds American is expected to report financial results Wednesday, Oct. 19, 2016.

    British American Tobacco has offered to buy Reynolds American Inc. in a $47 billion cash-and-stock deal.

    The London-based company offered Friday to buy the 57.8 percent of Reynolds it doesn't already own for the equivalent of $56.50 per share. Reynolds shareholders would receive $24.13 in cash and 0.5502 of a BAT share for each Reynolds share.

    BAT says the deal values the Winston Salem, North Carolina-based company, at $93 billion and that the offer price represents a 20 percent premium over Reynolds' closing price Thursday.

    BAT Chief Executive, Nicandro Durante, says the merger "is the logical progression in our relationship and offers all shareholders a stake in a stronger, truly global tobacco and Next Generation Products company."

    The deal brings together brands such as BAT's Lucky Strike and Reynolds' Camel.