British American Tobacco (NYSE: BTI ) is pleased to announce today the completion of the acquisition of the remaining 57.8% of Reynolds American Inc . (NYSE: RAI) the Company did not already own.
The acquisition creates a stronger, global tobacco and Next Generation Products company committed to delivering sustained long-term profit growth and returns. BAT now has a balanced presence in high growth emerging markets and high profitability developed markets, combined with direct access to the attractive US market. Increased access to a significant proportion of Group cash flows provides further support to the Company’s continued commitment to a dividend payout ratio of at least 65% and a strong financial profile, targeting a solid investment grade credit rating through progressive deleveraging.
BAT’s Chief Executive, Nicandro Durante commented:
“This is a transformational deal. We will take the best of the best from both businesses across all areas to create a stronger, more sustainable company. We are pleased to welcome Reynolds group employees to British American Tobacco and look forward to progressing what we are confident will be a smooth integration. Work has already begun to realize the projected cost synergies and we are committed to driving continued, sustainable profit growth and returns for shareholders long into the future.”
* They will be rolling out a new NEWPORT marijuana cigarette next year (2018), which might rocket price action up further. Continue to monitor at this time.