BAT signs vapour collaboration with RJ Reynolds Tobacco Co

British American Tobacco has signed a vapour products technology-sharing agreement with RJ Reynolds Tobacco Company, which is a subsidiary of Reynolds American Inc.

The agreement provides a framework for collaboration and mutual cross-licensing of the parties' vapour product technologies up to the end of 2022.

The collaboration also contemplates joint research and development activities and co-operation on regulatory, scientific and manufacturing issues relating to vapour products.

BAT’s managing director of Next Generation Products, Kingsley Wheaton, said: "This is an important milestone for BAT. This agreement should provide a strong platform to meet the demands of consumers today and in the future."

At 1325 GMT, British American Tobacco shares were down 0.2% to 3,861.50p.