British American Tobacco (BATS) has agreed to buy Reynolds American (RAI) in a $49 billion deal. This will see British American Tobacco buy the remaining stake in its rival. The agreement values Reynolds at $59.64 per share, which will be paid with $24.4 billion in cash and $25 billion in British American Tobacco ADRs.

British American Tobacco said it remained committed to a dividend payout ratio of at least 65%. The merger is expected to create annual cost synergies of $400 million and will result in the world's largest listed tobacco firm.