LONDON, April 22, 2026, 17:15 BST
British American Tobacco p.l.c. moved forward with its next share buyback phase Wednesday, tapping Merrill Lynch International to handle ordinary share repurchases from April 23 until June 29. This comes as UK lawmakers passed tougher legislation barring anyone who is under 18 today from ever legally purchasing cigarettes. Investegate
Timing is crucial here. BAT is moving ahead with cash returns just as its core cigarette business hits a tougher regulatory backdrop at home, and investors are watching to see if products like Vuse vapes and Velo nicotine pouches can shoulder a bigger part of the business.
The company plans to cancel shares acquired through the programme, cutting the total share count—a step that could push up earnings per share if profits stay level. Merrill Lynch will handle trading on its own, separate from BAT. With new UK listing rules in play, BAT shifts from daily buyback updates to a single weekly summary, the company said. Investegate
BAT ended Wednesday in London up 0.8% at 4,143 pence, recouping some ground after Tuesday’s 2.7% drop. Shares haven’t returned to their April peak, yet the company’s dividend and buyback plans continue to underpin demand. Investing
The buyback is one piece of BAT’s broader £1.3 billion repurchase plan for 2026. Back in February, BAT bumped its dividend up 2% to 245.04 pence. The company also flagged that its 2026 performance would likely hit the lower end of its medium-term target, while leverage is seen landing between 2.0 and 2.5 times by year-end. BAT
Politics took another turn Wednesday. The UK’s Tobacco and Vapes Bill will bump up the legal tobacco purchase age by a year, every year, for anyone born on or after Jan. 1, 2009. The bill also puts stricter rules on vaping and nicotine products—covering ads, in-store displays, giveaways, and price cuts. Reuters
Health Secretary Wes Streeting described the vote as “a historic moment,” adding that UK children are set to join the first smoke-free generation. The plan hasn’t cleared every hurdle just yet — it’s still waiting on royal assent, something Reuters says is expected next week. Reuters
BAT is working to reposition itself as a nicotine group, not simply a cigarette maker. Chair Luc Jobin said last week that the number of consumers picking up BAT’s smokeless products jumped over 15% year on year in 2025, pushing the company nearer its 2030 goal—50 million smokeless users. BAT
There’s a shake-up at the top. Dragos Constantinescu, who previously worked at BAT and is currently with Asahi Europe & International, is set to take over as chief financial officer on Sept. 1. Chief Executive Tadeu Marroco pointed to Constantinescu’s “strong understanding of BAT” as a key advantage, especially as the company prioritizes growth and cash returns. BAT
The outlook among rivals is anything but clear-cut. Philip Morris International lowered its full-year profit guidance on Wednesday, pointing to rising competition and the unknowns swirling around its Zyn nicotine pouches. Jefferies’ Andrei Andon-Ionita flagged Velo as the “likely beneficiary” if Zyn’s shipment pace continues to lag. Reuters
Imperial Brands last week flagged market share declines across its top five markets, saying it plans to prioritize profit margins, even if that means selling fewer cigarettes. Reuters pointed out that Imperial tends to compete on price, unlike BAT and Philip Morris, which rely more on high-end brands and invest heavily in innovation. Reuters
The risk is straightforward. Cutting shares with a buyback helps, but it doesn’t erase regulatory threats. Should stricter UK policies, slower U.S. product approvals, or competition from cheap or illicit vapes drag on the pivot to alternatives, BAT could need something beyond payouts to reassure its investors.
