The board of Reynolds American, Incorporated, agreed to a buyout by British American Tobacco (BAT), which had owned a 42.2 percent interest in Reynolds, and talks had been ongoing. The offer was finally accepted when BAT raised its offer another $2.4 billion to $49.4 billion. The offer represents a 26.4 percent premium on Reynolds stock. The deal must now undergo a four or five-month review by the Securities Exchange Commission. No insurmountable hurdles are anticipated, since BAT exited the U.S. market in 2004, and competition won’t factor in as Reynolds products will likely continue to be sold, just under new ownership. It is unclear how Reynolds’ operations will be structured under BAT, but the British company intends to maintain operations in Tobaccoville, which now employ 2,000-3,000. When the deal is approved, Reynolds shareholders will own 19 percent of BAT, and BAT will be the world’s largest publicly-traded tobacco company.