British American Tobacco has offered to pay $47bn (£38bn) to take full control of Reynolds American in a deal that would create the world’s biggest tobacco company by revenue and profit. The UK company said it was prepared to pay $56.50 a share, comprising $24.13 in cash and $32.37 in BAT shares. “From the moment Reynolds American was created in 2004, this was always the most likely outcome,” said Cenkos Securities analyst Rae Maile. Speculation has been rife for months that BAT might decide to buy out Reynolds as tobacco companies jockey for position. BAT said buying Reynolds, the number two US tobacco company after Philip Morris, would give it a leading position in the American market, the world’s second-biggest after China.

Source: The Guardian October 21, 2016 07:43 UTC