Thu, Sep. 24, 5:11 PM
- Japan Tobacco (OTCPK:JAPAF) is in talks to buy ~$5B in cigarette assets from Reynolds American (NYSE:RAI), as it aims to expand outside of its shrinking home market, Bloomberg reports.
- The available assets could include some of the Natural American Spirit tobacco brand that is part of a RAI operating company, according to the report.
- The Natural American Spirit brand is facing pressure from the FDA, which last month sent a letter to RAI saying the company needs to prove cigarettes labeled as "natural” or "additive-free” are less harmful in order to keep marketing them in such a manner.
Apr. 29, 2014, 12:55 PM
- Bankers and lawyers are busy working on potential mergers in the tobacco industry, reports CNBC (video).
- The biggest buzz is over the potential that Reynolds American (RAI +1.4%) will buy Lorillard (LO +3%) for as much as $80 per share.
- Though Wells Fargo notes Reynolds would have to divest some significant menthol brands to get a Lorillard deal past regulators, the firm sees a deal as likely.
- Other tobaccco players: MO, PM, BTI, ITYBY, ITYBF, PHJMF, JAPAF, SFIO, VGR, SWNG, SWMAF, SWMAY, XXII, BTAFF, UVV
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