MANILA, Philippines - British American Tobacco, the parent company of the local outfit that distributes the brands Pall Mall and Lucky Strike, recently announced the completion of its acquisition of Reynolds American Inc., in a deal valued at $49.4 billion.
Reynolds owns, among other subsidiaries, RJR Tobacco Co., the second largest US tobacco company.
"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," BAT chief executive Nicandro Durante said.
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 in developed markets, combined with direct access to the attractive US market, the world's most profitable one after China.
"We are immensely proud of BAT. This deal underlines the strength of the company, and we in the Philippines are excited to being an important part of this truly global enterprise," BAT Philippines general manager James Michael Lafferty said.
Aside from cigarettes, BAT Philippines also recently introduced Vype, a vaping product, becoming the first international tobacco company to launch a next generation product in the market.
© Pakistan Press International, source Asianet-Pakistan