Japan Tobacco in discussions to acquire assets from Reynolds American valued at about USD 5bn
Japan Tobacco (JT) [TYO:2914] is in negotiations to acquire assets from Reynolds American [NYSE:RAI] valued at around USD 5bn, according to a newswire report.
JT could acquire tobacco assets of Reynolds American, including part of the Natural American Spirit brand, Bloomberg revealed citing persons familiar with the situation. Although the talks are in the advanced stage, negotiations could still break down, adding that the size of the transaction and the assets involved could change, the persons, who requested anonymity due to the sensitivity of the information, said.
JT has been on an overseas acquisition binge as the domestic market is shrinking and the number of domestic smokers has stagnated, the report said.
Spokespersons for both Reynolds and JT declined to comment.
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