Cigarette Makers Might Join Forces
British American Tobacco PLC, the maker of Lucky Strike, Kent and other cigarettes, is expanding its global business with the planned $7.48 billion acquisition of rival Rothmans International BV.
The merger announced Monday would create a tobacco maker with 16 percent share of the world cigarette market, making it the second-largest global cigarette company after Philip Morris Cos. Philip Morris, manufacturer of Marlboro and other brands, has 17 percent of the world market.
British-based BAT is now the No. 2 seller internationally, and Netherlands-based Rothmans is No. 4. Together they produced more than 900 billion cigarettes in 1997.