British American Tobacco Finishes Purchase of Reynolds American, Inc.

The moment that industry watchers have been expecting for more than a decade is here.

Winston-Salem-based Reynolds American, Inc. has finished its sale to British American Tobacco in a deal worth roughly $50 billion. The official close of the deal makes British American the largest publicly-traded tobacco company in the world.

Reynolds existed as an independent firm for more than 140 years, largely shaping the growth and landscape of modern day Winston-Salem.

BAT had previously owned more than 40 percent of Reynolds stock, leading analysts to believe that, regulatory hurdles aside, the two companies would eventually become one.

British American Tobacco CEO Nicandro Durante praised the deal in a statement Tuesday.

“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," Durante said. "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."

While the day-to-day work at the new company may not be affected, there are some details worth noting.

• Reynolds shareholders got a price of $29.44 per share for the deal.
• At the closing bell Tuesday, Reynolds' will be unlisted from the New York Stock Exchange. Instead, the merged company will trade under the symbol "BTI".
• Lionel L. Nowell, III, Holly Keller Koeppel and Luc Jobin have been appointed to the BAT Board of Directors.

In the past, British American has said it largely plans to keep its U.S. workforce in place, including management. That includes thousands of North Carolina residents.

RAI spokesperson David Howard reaffirmed that Tuesday.

“Well, British American Tobacco has advised us that it's confident the great majority of jobs in the RAI family of companies will be preserved," he says.

Howard added that the Reynolds name will be preserved, and that ultimately, the merger will lead to a company better prepared to handle the changing tobacco marketplace. He even suggested there could be more good news to come, should the market cooperate.

"The acquisition creates new opportunities for employees and a larger global company with strong growth potential," he says.