British American Tobacco to buy Reynolds for $49.4bn

British American Tobacco said on Tuesday it had agreed terms to buy US rival Reynolds American after it increased its offer for the 57.8 per cent of the company it did not already own to $49.4 billion.

Reynolds shareholders will receive $29.44 in cash and 0.5260 BAT shares for each of their shares under the terms of the deal, representing a 26 per cent premium over the stock on October 20th.

BAT had previously offered $47 billion, an offer that was rejected for being too low in November.

Reuters