U.S. cigarette maker Reynolds American Inc, in talks to purchase rival Lorillard Inc, may have a hard time convincing regulators to approve the deal because of their big shares in the traditional cigarette and fast-growing electronic cigarette markets. The two companies, which are No. 2 and No. 3 in the United States, are in talks to hammer out a multibillion dollar deal that would likely try to address antitrust concerns up front."This clearly creates a duopoly. That's huge. That raises all kinds of eyebrows," said Andre Barlow, an antitrust expert with the law firm Doyle, Barlow and Mazard Plc.Still, he added: "(The deal) has a chance of being approved, depending on how big the divestiture package is."While Marlboro maker Altria Group dominates the shrinking U.S. market for traditional cigarettes at around 50 percent, Reynolds, which makes the Camel and Pall Mall brands, is at about 25 percent and Lorillard, whose biggest seller is the menthol-flavored Newport, is just under 15 percent.
Lorillard, Inc. (Lorillard) is the manufacturer of cigarettes in the United States. Shares of LO traded higher by 1.83% or $1.21/share to $67.22. In the past year, the shares have traded as low as $41.56 and as high as $67.28. On average, 3205930 shares of LO exchange hands on a given day and today's volume is recorded at 5012054.
Altria Group, Inc., is a holding company. At December 31, 2012, Altria Group, Inc. Shares of MO fell by 0.18% or $-0.08/share to $43.35. In the past year, the shares have traded as low as $33.12 and as high as $43.60. On average, 7231540 shares of MO exchange hands on a given day and today's volume is recorded at 8341316.
Reynolds American Inc. (RAI) is a holding company. Shares of RAI traded higher by 2.32% or $1.43/share to $63.18. In the past year, the shares have traded as low as $46.55 and as high as $63.39. On average, 2248790 shares of RAI exchange hands on a given day and today's volume is recorded at 3255552.
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