BAT Makes Approach to Reynolds American; Offer Looks Slightly Rich at First Glance
British American Tobacco announced that it has made an offer to acquire the remaining 57.8% of Reynolds American it does not already own for a total consideration of $47 billion, or $56.50 per share. Our initial impression is that the deal is slightly rich, and we may adjust our fair value estimate for BAT when we have combined the DCF models. However, the deal would create a truly global tobacco giant, merging two wide-moat companies, and would slightly enhance BAT's competitive positioning.Th...
British American Tobacco is engaged in tobacco and nicotine products. This includes Co.'s Next Generation Products, comprising its vapour and tobacco heating products, and its oral tobacco and nicotine products such as moist snuff and snus. Co.'s U.S business (Reynolds American) brand portfolio which includes Newport, Camel and Pall Mall. These, and other brands including Doral, Misty and Capri, are manufactured in a variety of styles and marketed throughout the U.S. Co. has other international and local cigarette brands including Vogue, Viceroy, Kool, Peter Stuyvesant, Craven A, Benson & Hedges, John Player Gold Leaf, State Express 555 and Shuang Xi.
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Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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