Japan Tobacco to buy U.S. tobacco maker Vector Group for $2.4 bln (updated)

Vector

21/08/2024 11:27

(Adds details from JT statement, Vector share moves)
       TOKYO, Aug 21 (Reuters) - Japan Tobacco  2914.T  (JT)
agreed to acquire Vector Group  VGR.N , the fourth largest
tobacco company in the United States, the Japanese company said
on Wednesday, in an equity transaction estimated at around $2.4
billion. 
    A JT-backed company will launch a tender offer for Vector
shares at $15 per share to take Vector shares private, JT said.
    Vector shares were up 5.8% in premarket trade from Tuesday's
$13.99 close after JT's announcement.
    The acquisition is unanimously supported by Vector board
directors and is expected to be completed within JT's current
financial year ending on Dec. 31, subject to antitrust
approvals, JT said.
        "We are excited by this acquisition which ...=ill
contribute to the acceleration of the ROI in our combustible
business and expand JT Group's global footprint," chief
executive Masamichi Terabatake said in a statement.
  

 (Reporting by Kantaro Komiya; Editing by Louise Heavens)
 ((Kantaro.Komiya@thomsonreuters.com; Twitter: @kantarokomiya;))