Deals
BAT’s Bid for Reynolds May Spur Final Wave of Big Tobacco M&A
- Japan Tobacco buying Imperial Brands is one potential deal
- Reunion of Philip Morris and Altria also considered possible
Why BAT's Reynolds Bid Is a Big Deal for Big Tobacco
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British American Tobacco Plc’s plan to buy Reynolds American Inc. could herald a final wave of industry consolidation as rivals will need to link up to compete with the world’s largest listed tobacco company.
As the number of publicly traded big tobacco companies gets whittled down, only a few possible combinations remain. Japan Tobacco Inc. buying Britain’s Imperial Brands Plc, and Philip Morris International Inc. re-merging with Altria Group Inc. eight years after splitting up are the most plausible scenarios, experts say. Any future deals would be more complicated than previous combinations, though.