BAT wants to expand the development of products beyond traditional cigarettes. File picture: Adnan Abidi BAT wants to expand the development of products beyond traditional cigarettes. File picture: Adnan Abidi
Geneva - British American Tobacco said it’s forming a research alliance with Reynolds American and agreed to buy Polish e-cigarette maker Chic Group as the tobacco company moves to expand the development of products beyond traditional cigarettes.
BAT and Reynolds plan to share so-called vapour technology, which supplies nicotine to consumers via aerosols, through 2022, the London-based maker of Lucky Strike cigarettes said on Tuesday in a statement.
Chic, the largest e-cigarette maker in Poland, sells brands such as Volish in 800 outlets across the country, BAT said, without disclosing the price it paid.
BAT and Winston-Salem, North Carolina-based Reynolds expect to sign a definitive accord by the end of this year after agreeing on a term sheet for the partnership.
The Chic acquisition is conditional on approval from Polish antitrust regulators, BAT said.
BLOOMBERG