Merger to Reshape Industry?

RT_reynolds_tobaccoBy: Richard Davies

Where there’s smoke there’s a merger. Reynolds American says it will buy its smaller rival Lorillard for $27.4 billion. The complicated cash and debt deal will reshape the U.S. tobacco industry with more significant competition for Altria Group, which makes Marlboro, by far the best-selling cigarette brand. The merger will also give Reynolds a stake in the e-cigarettes and menthol, the fastest growing parts of the tobacco industry. But the companies say they will sell the Kool, Salem, Winston, Maverick and blu eCigs brands to Imperial Tobacco Group for $7.1 billion to ease regulatory concerns about competition.

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