British American Tobacco proposes to fully acquire Reynolds American to enhance its market position and strengthen its capabilities in traditional and Next Generation Products.

Information on the Target

In January 2017, British American Tobacco (BAT) proposed to acquire the remaining 57.8% stake in Reynolds American, a significant move that would solidify BAT's position as a global leader in the tobacco industry. This acquisition follows BAT's longstanding relationship with Reynolds American, as the company has been a shareholder since 2004. By obtaining full ownership, BAT aims to enhance its operational capabilities and market presence.

The acquisition is expected to create an organization with a robust portfolio of tobacco and Next Generation Products (NGPs), leveraging the strengths of both companies in emerging and developed markets alike.

Industry Overview in the US

The U.S. tobacco industry has faced various challenges, including regulatory pressures and a significant rise in illicit trade. Despite recent struggles, the market for traditional tobacco produ