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Bloomberg: Reynolds to announce Lorillard deal as soon as next week

  • Reynolds American (RAI) may announce its purchase of Lorillard (LO) as early as July 14, Bloomberg reports.
  • Many rumors have been circulating in the past few weeks regarding big tobacco M&A, as shrinking U.S. demand for cigarettes puts pressure on companies to team up.
  • Under the current deal, Reynolds would acquire most of Lorillard, with some brands being acquired by Imperial Tobacco (ITYBY), to receive regulatory approval. British American Tobacco (BTI), who owns a 42% in Reynolds, is said to have already given the company the go-ahead for the purchase.
  • The new report conflicts with another rumor heard this week stating British American Tobacco will buy the 58% of Reynolds American it doesn't already own - cancelling any possible deal with Lorillard.
Comments (9)
  • Chris DeMuth Jr.
    , contributor
    Comments (4036) | Send Message
     
    Bloomberg's piece relied upon multiple sources. The Daily Mail piece was single sourced.
    11 Jul, 07:03 AM Reply Like
  • Those Who Wait
    , contributor
    Comments (206) | Send Message
     
    So what stock will shareholders own in either scenario? Will LO stock disappear or stay, but as a lesser company?
    11 Jul, 01:27 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4036) | Send Message
     
    (LO) stock will disappear.
    11 Jul, 01:38 PM Reply Like
  • Sunshine123
    , contributor
    Comments (609) | Send Message
     
    I surely hope BAT keeps its distance until the deal with RAI and LO is completed.
    We do not need them to be the spoiler.
    11 Jul, 10:55 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4036) | Send Message
     
    BAT is actively helping with RAI-LO and is injecting additional capital into the deal.
    12 Jul, 07:35 AM Reply Like
  • 433963
    , contributor
    Comments (43) | Send Message
     
    Any predictions as to what RAI will pay for LO?

     

    Thanks,
    Lance
    12 Jul, 01:50 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4036) | Send Message
     
    $70-80.
    12 Jul, 07:35 AM Reply Like
  • Sunshine123
    , contributor
    Comments (609) | Send Message
     
    Sounds like a win-win situation for all concerned. Let us hope for good news tomorrow, Mon., July 14.
    13 Jul, 08:35 PM Reply Like
  • donlsales
    , contributor
    Comments (117) | Send Message
     
    I predict RAI will aquire Newport and maybe Blu-e and sell everthing else, including a few of their current brands.

     

    RAI is assuming the Menthol risk has blown over!
    14 Jul, 01:21 PM Reply Like
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