BrandMS Club ETI
Brand MS Club ETI
British American Tobacco has bought the state-owned Italian tobacco firm Ente Tabacchi Italiano (ETI) for 2.3bn euros ($2.59bn;£1.6bn).
The deal will give BAT, the world's second largest cigarette group, a key position in Europe's second largest tobacco market where 26% of adults smoke.
ETI has a 26% share of the Italian market through its MS and Sax cigarette brands.
But analysts said BAT had paid over the odds for the Italian group and that the deal may not prove profitable for the tobacco giant.