British American Tobacco (LON:BATS) has told investors that it has signed a technology-sharing agreement for vapour and electronic cigarette devices.
The deal with Reynolds American Inc sets out a framework for collaboration and mutual cross-licensing up until the end of 2022.
It contemplates joint research and development activities and co-operation.
"This is an important milestone for BAT,” Kingsley Wheaton, managing director of BAT’s next generation products.
“This agreement should provide a strong platform to meet the demands of consumers today and in the future."