British American Tobacco, Europe’s largest cigarette maker, will pay $494m for 85% of Indonesian cigarette company Bentoel, which sells the Star Mild brand of kretek, or clove-flavoured cigarettes, as the UK company seeks to expand in Asia’s third most populous nation, reports Bloomberg. BAT will pay 873 rupiah a share for Bentoel, whose shares surged 8% on Wednesday in Jakarta to 810 rupiah.

This entry was posted by Gwen Robinson on Wednesday, June 17th, 2009 at 5:32 and is filed under Capital markets, M&A. Tagged with bat, Bentoel. Edit this entry.