The shareholders of British American Tobacco (BAT) and Reynolds American have given this Wednesday the green light to buy the second group by the first, for nearly 50 billion.
A BUYOUT TO BECOME A LEADER IN THE E-CIGARETTE MARKET
The British tobacco company, which owns the brands Lucky Strike, Dunhill, Kent and Rothmans among others, will acquire the 57,8% of the capital of Reynolds American which it does not yet own for 49,4 billion dollars (42,8 billion dollars). euros). The operation should be finalized around July 25, BAT said in a statement. It should allow the British group to become a leader in the United States and in e-cigarettes.
BAT announced in January that the operation would be carried out partly in cash and partly through an exchange of shares. Reynolds owners will receive $ 29,44 in cash and 0,5260 BAT share. The operation will represent a total payment to their benefit of 24,4 billion dollars in cash and 25 billion in action. The amount paid includes a 26% premium over the closing price of the Reynolds share on October 20, 2016, the day before BAT announced that it had made a friendly takeover offer for the group of which it already owns. 42,2% of the capital.
The US competition authorities did not oppose this acquisition before the deadline given to them of March 8, 2017, meaning that the transaction met their conditions. Also concerned, the Japanese authorities gave their unconditional agreement a month later. This transaction is the largest consolidation in the sector since the takeover by Reynolds of his compatriot Lorillard in 2016 to the tune of 27 billion dollars. BAT will thus become the number one listed tobacco company in the world in terms of turnover and operating profit.
BAT also consolidates its third place in the world behind the state juggernaut China National Tobacco Corporation and Philip Morris International, which sells Marlboros outside the United States as well as L&M and Chesterfields. The British group, which presents itself as " main international group of vaping“, Also intends to strengthen this position by the acquisition of the American.
In addition to the Vype electronic cigarette sold in particular in the United Kingdom and in France, BAT thus acquires the Vuse e-cigarette, owned by Reynolds and presented as one of the main brands on the American market - the first in the world in the field.
Source : Le Figaro
