TOKYO (Reuters) -- Japan Tobacco (JT) agreed to acquire Vector Group, the fourth largest tobacco company in the United States, the Japanese company said on Wednesday, in an equity transaction estimated at around $2.4 billion.
A JT-backed company will launch a tender offer for Vector shares at $15 per share to take Vector shares private, JT said.
Vector shares were up 5.8% in premarket trade from Tuesday's $13.99 close after JT's announcement.
The acquisition is unanimously supported by Vector board directors and is expected to be completed within JT's current financial year ending on Dec. 31, subject to antitrust approvals, JT said.
"We are excited by this acquisition which will contribute to the acceleration of the ROI in our combustible business and expand JT Group's global footprint," chief executive Masamichi Terabatake said in a statement.
