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"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," said Susan Cameron, who recently stepped down as CEO of Reynolds American and now serves as executive chairman

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The deal is expected to create annual savings of $400 million in three years and give British American Tobacco a bigger foothold in the U.S., where Reynolds claims 34% of the cigarette market share

Contrarily, studies have also shown that some perceive e-cigarettes as being less harmful than regular cigarettes