British American Tobacco picks insider with 'track record of innovating' as new boss

British American Tobacco completed its blockbuster merger with Reynolds in July 2017 - PA

British American Tobacco has selected an internal candidate for its new chief executive, resisting the temptation to plump for a high-profile external candidate.

The tobacco titan said Jack Bowles, the chief operating officer of its international business, would take over from Nicandro Durante when he retires next April.

Mr Durante stepped down last week after eight years in the top job amid mounting concerns about BAT’s sliding share price. Mr Bowles will take over as chief executive designate of the owner of Camel and Dunhill from November 1.

Around a fifth of BAT’s stock market value has been wiped away in the last year as tobacco companies are threatened by rising global demand for vaping products. Last week BAT said it had “identified a lead candidate to succeed” Mr Durante.

Chairman Richard Burrows said Mr Bowles was an "experienced and dynamic successor" who had a “track record of innovating”.

Mr Bowles joined BAT in 2004 as chief executive of its French division. After a stint running Malaysian operations, he returned as the regional director of Western Europe. He went on to become regional director of the Americas and Asia-Pacific regions.

Analysts from Citi wrote: “Given BAT has chosen an internal candidate, we don’t expect fundamental change.”

Investors have become increasingly frustrated at BAT’s guidance over the last 12 months, with analysts pointing to a lack of communication over a switch towards so-called next generation products.

BAT’s share price malaise comes after last year's $50bn (£38bn) merger with Reynolds.

Mr Bowles said: "I am honoured to succeed Nicandro. It is an exciting time for BAT with many changes in our industry but also great opportunities."

BAT shares rose 1.8pc in morning trade to £34.79.