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.
That trade was like 10 months ago... did do that up leg from $60 to $70 after this chart/article. With a call credit spread. I have not look at this since but will check out and break it down. Sincerely.
Pokethebear
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What is BTI status on the CBD front under Newport? Seems like merge hammered LT value, while new sales would indicate value here. Appreciate updated analysis, have not seen in MF updates.