The Biggest Big Tobacco Companies

The global tobacco industry saw a major shift in the competitive landscape this week after British American Tobacco p.l.c. BTI reached an agreement to acquire the remaining 57.8 percent stake of Reynolds American Inc. RAI it didn't already own.

British American stated that the combination of the two companies will create a "stronger, truly global tobacco and Next Generation Products company, delivering sustained long-term profit growth and returns."

"Through this transaction, we form an industry leader that will focus on innovation and brand building," said Susan M. Cameron, executive chairman of Reynolds American's board of directors. "This combination will create a truly global tobacco company with multiple iconic tobacco brands, and a world-class pipeline of next-generation vapor and tobacco-heating products."

How Does The New Company Stack Up To The Competition?

According to Statista, British American is the third-largest player in the global tobacco market with an enterprise value of $129 billion and Reynolds is the fourth-largest with an enterprise value of $89 billion.

The combined entity at face value will be valued at $218 billion, which makes it the clear No. 1 player in the global market.

Here is a summary of the six largest tobacco companies ranked by enterprise value, prior to the combination of British American Tobacco and Reynolds.

• 1. Philip Morris International Inc. PM- $175 billion.
• 2. Altria Group Inc MO - $139 billion.
• 3. British American Tobacco - $129 billion.
• 4. Reynolds American - $89 billion.
• 5. Tokyo-listed Japan Tobacco Inc (TYO: 2914) - $68 billion.
• 6. London-listed Imperial Brands PLC IMB - $61 billion.