British American Tobacco (BTI) said Tuesday that it has reached an agreement to buy the remaining stake of Reynolds American (RAI) it doesn't already own for just under $50 billion.

The deal will see BAT pay $29.44 in cash and and 0.5260 of ordinary BAT shares for each outstanding Reynolds share, the company said in a statement, implying a total current value, based on Monday's exchange rate between the dollar and the pound, of $59.64 per share and a total value of $49.4 billion.

Based on Friday's closing price for Reynolds' shares, the represents a premium of 6.55%, although that figure rises to 26% when compared to closing price on the day prior to BAT's first formal bid for Reynolds on Oct. 20. BAT shares rose 0.36% by 08:50 GMT to change hands at 4,779.5 pence each to take them to around the same level of the first first Reynolds approach.

Broken down the bid represents $24.4 billion in cash and $25 billion in BAT ADRs, the company said. That compares to the $47 billion bid price BAT revealed on Oct. 20, when it said it would pay $24.13 in cash and 0.5502 of BAT shares for the make of Camel and Pall Mall cigarettes. 

"Our combination with Reynolds will benefit from utilising the best talent from both organisations. It will create a stronger, global tobacco and NGP business with direct access for our products across the most attractive markets in the world," said CEO Nicandro Durante. "We believe this will drive continued, sustainable profit growth and returns for shareholders long into the future."

BAT said it remained committed to a dividend payout ratio of at least 65% and said the merger would create annual cost synergies of around $400 million. 

Reynolds shares closed at $55.97 last week in New York, but did not trade Monday owing to the U.S.'s Martin Luther King Jr. holiday, and have risen 20.9% since Oct. 19.