LONDON (AP) — British American Tobacco Plc has agreed to fully take over Reynolds American Inc. on terms that are improved from an initial bid made last year.

The takeover would create the world's largest publicly traded tobacco company and combine BAT's presence in developing countries, where anti-smoking campaigns are not as strong as in the U.S. and Europe, with Reynolds' almost exclusive focus on the U.S.

BAT said Tuesday it will buy the 57.8 percent of Reynolds it does not already own. Reynolds shareholders will receive for each share $29.44 in cash and 0.5260 BAT shares.

BAT says that values Reynolds at $59.64 per share, or $49.4 billion for the stake to be acquired.

BAT sells Dunhill, Rothmans and Lucky Strike cigarettes, while Reynolds owns brands like Newport, Camel and Pall Mall.