Reynolds American's Proposed Acquisition By BAT Clears U.S. Antitrust Hurdle

(RTTNews) - Reynolds American Inc. (RAI) and British American Tobacco plc. (BATS.L, BTI) said that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 relating to BAT's proposed acquisition of RAI has expired without a request for additional information by the U.S. Department of Justice or the Federal Trade Commission.

The expiration of the Act's waiting period satisfies the transaction closing condition related to U.S. antitrust approval. The transaction still requires approval by shareholders of both RAI and BAT as well as regulatory clearance from Japan. It is also subject to the satisfaction or waiver of the other closing conditions specified in the merger agreement.

In mid-January, British American said it has agreed to buy the remaining 57.8 percent of Reynolds American that it does not already own for $49.4 billion in cash and stock.

Both companies continue to expect the transaction to close in the third quarter of 2017.