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Simpson Thacher is representing J.P. Morgan Securities LLC as financial advisor to Reynolds American Inc. (NYSE: RAI) in connection with its definitive agreement with British American Tobacco p.l.c. (LSE: BATS), pursuant to which British American Tobacco (BAT) will acquire the 57.8% of Reynolds American’s common stock that BAT does not currently own in a cash and stock transaction currently valued at $59.64 per share, representing an aggregate value of approximately $49 billion. At closing, Reynolds American shareholders will receive for each share of Reynolds American common stock they own, $29.44 in cash and a number of BAT American Depositary Shares representing 0.526 of a BAT ordinary share, and Reynolds American shareholders will own approximately 19% of the combined company. The transaction is expected by the parties to close in the third quarter of 2017, and is subject to shareholder approval from both Reynolds American and BAT shareholders, as well as regulatory approvals and other customary closing conditions.

Reynolds American is the parent company of, among other companies, R.J. Reynolds Tobacco Company, which is the second-largest U.S. tobacco company and which includes the Newport, Camel and Pall Mall brands. BAT is a global tobacco group with brands sold in more than 200 markets. BAT employs more than 50,000 people worldwide and has over 200 brands in its portfolio.

The Simpson Thacher team includes Rob Spatt and Jihyun Chung (M&A).