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

|About: Reynolds American, Inc. (RAI)|By:, SA News Editor

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.