Britain's Imperial Tobacco said today it would strengthen its position as the world's fourth largest tobacco group after Franco-Spanish rival Altadis accepted a takeover worth €16.2 billion.
A tie-up between the world's fourth and fifth biggest tobacco groups, which is worth $22.4 billion, would marry Imperial Tobacco brands Regal, Embassy and Davidoff with Altadis' Gauloises and Fortuna.
'I am pleased to announce that the Altadis board will recommend our proposed offer to its shareholders,' Imperial Tobacco's chief executive Gareth Davis said in a statement.
'Imperial Tobacco and Altadis are a great strategic fit, which will consolidate our position as the world's fourth largest international tobacco company,' he added.
Imperial said the Altadis board of directors would recommend that shareholders approve the bid, worth €50 a share, in the absence of a higher, competing offer.
