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BREAKING NEWS

British American Tobacco to merge with Reynolds

British American Tobacco takeover of US firm Reynolds will create the world's biggest listed tobacco company, overtaking Philip Morris International.

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British American Tobacco to merge with Reynolds

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British American Tobacco has rolled up its takeover of US rival Reynolds.

That comes after BAT improved its offer. It will pay $49.4 billion (46.2 billion euros) – for the 58 percent of Reynolds that it does not already own.

The deal will create the world’s biggest listed tobacco company, overtaking Philip Morris International.

It marks the return of UK based BAT to the lucrative and highly regulated US market after a 12-year absence.

This is the latest consolidation in an industry which is shrinking in the West as fewer people smoke.

Analysts said the takeover could spark further deals involving Philip Morris, Japan Tobacco, Imperial Brands and Altria Group as they all jostle for market share.