Japan Tobacco (JT) has announced its intention to purchase Vector Group, the fourth-largest tobacco company in the U.S., in a deal valued at approximately $2.4 billion. The acquisition will be executed through a tender offer, with JT offering $15 per share to take the company private.
Following the announcement, Vector Group’s stock rose by 5.8% in premarket trading, up from Tuesday’s closing price of $13.99.
The acquisition has received unanimous approval from Vector Group’s board of directors and is anticipated to be finalized within JT’s current fiscal year, which ends on December 31, pending regulatory approvals.
Masamichi Terabatake, CEO of Japan Tobacco, expressed enthusiasm about the acquisition, highlighting its potential to enhance returns in the company’s combustible tobacco segment and extend JT’s global presence.
