British American Tobacco (BAT) has become the biggest listed tobacco firm following its $49.4bn (£40bn) deal to take over US rival Reynolds.

BAT will acquire the remaining 57.8% of Reynolds it does not already own, which will see the uniting of big name brands including Lucky Strike, Rothmans, Dunhill and Camel cigarettes.

Nicandro Durante, BAT’s chief executive, said: “It will create a stronger, global tobacco and new generation products business with direct access for our products across the most attractive markets in the world.”