British American Tobacco (BTI) announced on Tuesday that it had agreed to purchase the outstanding stake of Reynolds American, (RAI) which it had not previously owned, for just under $50 billion.

BAT will pay $29.44 in cash and .526 in ordinary BAT shares for each remaining Reynolds share. Equating to a total value, based on Monday's exchange rate between the dollar and pound, $59.64 a share, a total value of $49.4 billion.

"This was a hard-negotiated sweet spot between the two sets of shareholders," Reynolds American CEO Susan Cameron told CNBC's "Squawk on the Street" Tuesday morning. "That $29.44, which was significant increase in the cash piece, complimented by the .526 piece of equity gives our shareholders almost a 50/50 component between cash and equity."

The deal, she continued, allows Reynolds shareholders to be demonstrative in participating in future endeavors, maintain interest in the U.S. market, and to take part in the growth of the group moving forward.

"We feel like we did hit the sweet spot, it is a win-win for both sets of shareholders and British American Tobacco has been a great shareholder of ours," Cameron said. "They have held 42.4% since the inception of Reynolds American in 2004. We have returned over 1,100% in shareholder return in that period."

Moreover, Cameron believes the merger is indicative of effective synergies between the two companies. "When we think about this transaction though, British American Tobacco does not have any other operations in the United States," she stated. "So, the great majority of jobs here, and certainly all of our facilities, will remain in operating for the U.S. business."

She is also excited about the prospects of Reynolds playing a more intricate role in larger activities between the two groups, and the potential of creating new jobs.

"We feel very good about getting those synergies and bringing them into the combined company. We have a very strong relationship," she contended.

Shares of British American Tobacco were lower in afternoon trading on Tuesday.