British American Tobacco (BAT) has turned to Herbert Smith for advice on the £2.05bn purchase of Scandinavia’s largest tobacco brand.
The company paid £1.15bn cash and £904m in stock in exchange for the tobacco arm of Denmark’s Skandinavisk Tobakskompagni (ST).
Herbert Smith corporate partners Austin Sweeney and James Palmer acted for longstanding client BAT.
BAT received additional advice from Danish firm Delacour and ST called on Kromann Reumert, led by Christian Lundgren.
The tobacco giant exchanged its 32.5 per cent stake in ST as part of a deal to take control of the various tobacco products offered by the Danish conglomerate.
Sweeney said: “Rather than own a third of a diversified business, they will have full control of the core profitable cigarette business.”
The purchase gives BAT the number one market position in Denmark and Norway, as well as expanding its interest in Eastern Europe.
The deal was the BAT’s second major acquisition in a fortnight. Last week the tobacco giant bought Turkish brand Tekel Cigarette for $1.7bn (£854m). Herbert Smith also advised on aspects of that deal, which was led by local Turkish firms.
The Danish acquisition, which is subject to European Commission approval, is expected to completed later this year.