PhotoLONDON — British American Tobacco said on Tuesday that its sweetened offer to buy the stake in Reynolds American that it did not already own had been accepted, a $49 billion deal that would create a tobacco giant with a significant presence around the world. The agreement came nearly three months after British American Tobacco first offered to buy the 57.8 percent of Reynolds American that it did not own, at the time offering about $47 billion. Reynolds American was formed more than a decade ago, when British American Tobacco merged its Brown & Williamson operations in the United States with R. J. Reynolds. “British American Tobacco is the best partner for Reynolds American’s next phase of growth, and together the two companies will create the leading portfolio of tobacco and next-generation products for adult tobacco consumers.”Three Reynolds directors would join the British American Tobacco board after the deal closes. Centerview Partners, Deutsche Bank and UBS, and the law firms Cravath, Swaine & Moore and Herbert Smith Freehills advised British American Tobacco on the proposed deal.

Source: New York Times January 17, 2017 09:50 UTC