British American Tobacco tabled a bid for all of competitor Reynolds American’s shares. If it is accepted, then Lucky Strike and Camel will become part of the same company.
43 billion
With the acquisition, BAT hopes to beat Altria’s Marlboro to become America’s number one cigarette brand, but for that to happen, Reynolds will need to accept the 47 billion dollar (43 billion euro) bid.
BAT currently has 42.2 % of Reynolds’ shares, the result of a merger between Reynolds subsidiary, RJ Reynolds Tobacco and BAT subsidiary Brown & Williamson. Now, it has set its sights on the remaining shares in order to create one single company.
The tobacco industry is in merger mode over the past few years, with companies trying to lower costs as sales continue to decline.
