JT Group to buy Vector Group in $2.4bn deal

21st Aug 2024 13:18

(Sharecast News) - US tobacco maker Vector Group said on Wednesday that it has agreed to be bought JT Group in a $2.4bn deal.

Under the terms of the agreement, JT Group, which is headquartered in Tokyo, will pay $15.00 per share in cash.

Howard M. Lorber, president and chief executive officer of Vector Group, said: "Vector Group and JT Group share a commitment to quality and excellence and providing consumers an outstanding value proposition in the US cigarette market.

"This transaction delivers significant value to Vector Group stockholders and creates opportunities for our employees, who will become part of a leading global organisation. Vector Group has an incredibly talented team who have been completely dedicated to building a strong business. JT Group has deep respect for Liggett Vector Brands' legacy of value-focused, quality products and looks forward to continuing to meet customers' evolving needs."

The deal is expected to close in the fourth quarter of this year.

JT Group's global tobacco business, headquartered in Geneva, Switzerland, manufactures and sells some of the world's best-known brands in over 130 markets worldwide, including Winston and Camel (outside the US), as well as MEVIUS and LD.

At 1315 BST, Vector Group shares were up 7.7% in pre-market trade at $15.07.