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.

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Comments (9)
  • Chris DeMuth Jr.
    , contributor
    Comments (10638) | Send Message
     
    Bloomberg's piece relied upon multiple sources. The Daily Mail piece was single sourced.
    11 Jul 2014, 07:03 AM Reply Like
  • Those Who Wait
    , contributor
    Comments (861) | Send Message
     
    So what stock will shareholders own in either scenario? Will LO stock disappear or stay, but as a lesser company?
    11 Jul 2014, 01:27 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (10638) | Send Message
     
    (LO) stock will disappear.
    11 Jul 2014, 01:38 PM Reply Like
  • Sunshine123
    , contributor
    Comments (1127) | 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 2014, 10:55 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (10638) | Send Message
     
    BAT is actively helping with RAI-LO and is injecting additional capital into the deal.
    12 Jul 2014, 07:35 AM Reply Like
  • 433963
    , contributor
    Comments (53) | Send Message
     
    Any predictions as to what RAI will pay for LO?

     

    Thanks,
    Lance
    12 Jul 2014, 01:50 AM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (10638) | Send Message
     
    $70-80.
    12 Jul 2014, 07:35 AM Reply Like
  • Sunshine123
    , contributor
    Comments (1127) | Send Message
     
    Sounds like a win-win situation for all concerned. Let us hope for good news tomorrow, Mon., July 14.
    13 Jul 2014, 08:35 PM Reply Like
  • donlsales
    , contributor
    Comments (123) | 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 2014, 01:21 PM Reply Like
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