British American Tobacco makes $47 billion offer for U.S. rival Reynolds

(Image credit: Justin Sullivan/Getty Images)

On Friday, British American Tobacco PLC (BAT) offered rival tobacco giant Reynolds American $47 billion for the 57.8 percent of the company it doesn't already own. The price — $56.50 a share, or a 20 percent premium over Reynolds' Oct. 20 closing price — values the American company at $81.3 billion, and the combined cigarette behemoth would pass Altria to become the biggest player in the U.S. market, combining the brands Camel, Newport, Pall Mall, Kent, Dunhill, Lucky Strike, and American Spirit. About $20 billion of the offer would be in cash and the other $27 billion in BAT shares.

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Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.