Navigate this market better. Subscribe for FREE stock alerts and information.

Tuesday, July 15, 2014

Imperial Tobacco to purchase US cigarette brands for $7.1 bln, (NYSE: LO)

Imperial Tobacco Group Plc plans to purchase the leading U.S. e-cigarette brand blu as part of its $7.1 billion acquisition of U.S. cigarette brands, being sold as part of Reynolds American Inc's $27.4 billion purchase of Lorillard Inc.Imperial's purchase, meant to address potential antitrust objections to the marriage of the United States' No. 2 and No. 3 tobacco firms, also includes Maverick, Salem as well as the international and U.S. rights to blu e-cigarettes, which control nearly half of the U.S. e-cigarette market.Analysts had not expected the blu brand to be part of Imperial's haul from the deal, plans for which were first reported by Reuters in May."Blu was probably the sweetener that persuaded them to pick up what can probably most politely be described as third-tier brands," said Philip Gorham, an analyst with research firm Morningstar.

Lorillard, Inc. (Lorillard) is the manufacturer of cigarettes in the United States. Shares of LO fell by 7.48% or $-5.03/share to $62.19. In the past year, the shares have traded as low as $41.56 and as high as $67.46. On average, 3259580 shares of LO exchange hands on a given day and today's volume is recorded at 9073485.