Company of Lucky Strike, buy the Camel, and ensures leadership in the sector – Jornal de Negócios – Portugal

the agreement comes to an end a battle of nearly three months, within which BAT sought to control the Reynolds.

THE BAT has increased the supply component of money. And rose, the stop in about two thousand million dollars.

According to British American Tobacco, the proposal evaluates each action of the Reynolds in 59,64 dollars, by 5.6% than the previous proposal, made in October, 56.5 dollars. In this new offering, 29,44 dollars will be paid in cash and the remainder in shares. That is, for each share of Reynolds, its shareholders will receive 0,526 actions of the BAT. Which evaluates the Reynolds 86 thousand million dollars, and guarantees to the BAT to return to the north american market, where it already was not in a direct way 12 years ago.

that evaluates the Reynolds in a ratio of 16.9 times its EBITDA, which BAT claims to be a multiple greater than the comparable in the industry.

Although the portfolio of brands from Reynolds, the BAT is most interested in, as he explained to Bloomberg, in the substitute products of the traditional cigarettes, as the e-cigarette Vuse.

The analysts, according to the news agency, say that the increase of the offer can also be related to the expected cutting taxes on corporations promised by Donald Trump, who takes office as president of the USA this Friday.

THE BAT expects to achieve synergies of $ 400 million with this acquisition, in three years. Combined the two companies to outperform Philip Morris International, producer of Marlboro. Only in the USA, the new company will be 35% of the market. BAT owns brands such as Lucky Strike, Dunhill, Rothmans and Reynolds holds the Camel, Pall Mall, Newport.