British American Tobacco (BAT) tabled an offer to acquire the 58 per cent Reynolds American (RAI) that it does not already own for a mixture of cash and shares valued at USD 47 billion (EUR 43 billion), the company said.

BAT, which owns 42.2 per cent of RAI, offered Reynolds shareholders USD 24.13 in cash and 0.5502 BAT stock per RAI share, an offer with that valued an RAI share at USD 56.50. The offer for the remaining 57.8 per cent of RAI would create the largest listed tobacco company in terms of sales and operating profit, BAT said.
Of the USD 47 billion, USD 20 billion would be a cash payout and USD 27 billion in BAT shares. The transaction, which has yet to be discussed with the RAI Board, would be executed as a US statutory merger, BAT said.
“We have been a shareholder in Reynolds since its creation in 2004 and have benefited from its growth in the US market,” said BAT Chief Executive Officer Nicandro Durante. “The acquisition of Lorillard in 2015 has further strengthened Reynolds’s business. 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."