RALEIGH, N.C. — Shareholders of British American Tobacco and Reynolds American Inc. support merging into the world's largest publicly traded tobacco company.
Shareholders of both companies on Wednesday approved London-headquartered BAT buying the nearly 60 percent of Reynolds it doesn't already own. The purchase is expected to become effective next week.
British American Tobacco sells Dunhill, Rothmans and Lucky Strike cigarettes. Winston-Salem, North Carolina-based Reynolds owns the Camel, Newport and Pall Mall brands.
BAT projects saving at least $400 million a year through cost-cutting of corporate operations, increased purchasing power, and other efficiencies.
Each Reynolds share will convert to $29.44 in cash and about half a share in BAT. The British company says the price is nearly 40 percent above the value of Reynolds' shares before its earlier, unsuccessful purchase offer in October.
Read Thursday's Arkansas Democrat-Gazette for full details.