Value of ‘heat not burn’ smoking technology stalling BAT buyout
The value of new technology is stalling BAT’s buyout of Reynolds along with the potential corporation tax cuts that may come.
he slow-burn negotiations between British American Tobacco (BAT) and Reynolds, the American maker of Camel cigarettes, towards a £38bn merger are stuck on the value of new technology, it has been claimed.
BAT, which already owns 42pc of Reynolds, bid $56.50 per share in a mix of cash and stock in October but was rejected.
The two companies have been attempting to thrash out a deal since, amid volatility in the value of consumer staples and against the backdrop of the election of Donald Trump.