US: British American Tobacco/Reynolds $47bn clears first antitrust hurdle

Reynolds American and British American Tobacco announced Thursday that the waiting period under the Hart-Scott-Rodino Act relating to BAT’s proposed acquisition of RAI has expired without a request for additional information by the US Department of Justice or the Federal Trade Commission.

The expiration of the Act’s waiting period satisfies the transaction closing condition related to US antitrust approval. The transaction still requires approval by RAI and BAT shareholders and regulatory clearance from Japan, and is subject to the satisfaction or waiver of the other closing conditions specified in the merger agreement.

The deal is set to create the biggest listed tobacco company with brands including Newport Camel, Lucky Strike and Pall Mall coming under one roof and will mark a return to the US market for BAT after 12 years.

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