R47bn

is BAT’s offer price to buy out minority shareholders in US tobacco group Reynolds Ron Klipin acquisitions for growth and higher shareholder returns.

In 2015 Reynolds completed its own multibillion-dollar deal when it acquired Lorillard for $25bn. “The Lorillard acquisition bolstered Reynolds’ brand portfolio and has resulted in a more favourable growth outlook,” Van Vlaanderen said.

Johann Rupert’s Reinet Investments, which holds 3.7% of BAT, could not comment as the company is in a closed period.

BAT reported revenue growth of 8.1% at constant rates of exchange in the latest year, with cigarette volume up 2.2%.

BAT’s share price on the JSE rallied almost 4% on news of the possible merger. The company is valued at about R1.7-trillion.