Published: 25 July 2017

British American Tobacco said it is pleased to announce today the completion of the acquisition of the remaining 57.8% of Reynolds American 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 realise the projected cost synergies and we are committed to driving continued, sustainable profit growth and returns for shareholders long into the future."

According to the transaction, Reynolds shareholders will receive for each Reynolds share $29.44 in cash, without interest, and 0.5260 BAT ordinary shares which shall be represented by BAT American Depositary Shares. Reynolds shares no longer trade on the New York Stock Exchange and will be delisted from the NYSE as soon as practicable. All BAT ADSs, including those issued to Reynolds shareholders in connection with the acquisition, will be listed on the NYSE today under the trading symbol "BTI". The 429,030,727 new BAT ordinary shares underlying the BAT ADSs issued in connection with the acquisition are expected to be admitted to listing on - the premium segment of the Official List and to trading on the London Stock Exchange Main Market for Listed Securities at 8am on 26 July 2017; and the main board of the Johannesburg Stock Exchange at 8am (South Africa time) on 26 July 2017.
- Agencies

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