BAT to Acquire Rest of Imasco, Sell Businesses

British American Tobacco said it will buy the rest of Imasco Ltd. of Canada for $6.8 billion in cash and sell its non-tobacco businesses, moving closer to its goal of overtaking Philip Morris Cos. as the world’s largest cigarette company. BAT, which now holds a 42% stake in Montreal-based Imasco, said Toronto-Dominion Bank has agreed to buy Imasco’s CT Financial Services Inc. for $5.3 billion. The London-based tobacco company also said it expects to raise at least $2.05 billion from auctioning Imasco’s Shoppers Drug Mart chain and Genstar Development Co. Imasco, whose brands include Player’s, has formed an independent panel to study BAT’s offer and will make a recommendation on the proposal after buyers are found for Shoppers and Genstar. With the acquisition, BAT would have 16% of the world’s cigarette market, trailing Philip Morris’ 17.4%. The company acquired Rothmans International, maker of Dunhills, just two months ago.