Reynolds American Inc said it would purchase rival Lorillard Inc for about $25 billion, merging two of the world's biggest cigarette makers amid a slowdown in sales.Reynolds, whose brands include Camel and Pall Mall, offered $68.88 per Lorillard share, representing a premium of 2.5 percent to Lorillard's Monday closing.Lorillard's shares, which have risen about 37 percent since reports in February of a possible deal, were down 5.5 percent at $63.50 before the bell on Tuesday.Including debt, the deal is valued at $27.4 billion.
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 $67.46. On average, 3259580 shares of LO exchange hands on a given day and today's volume is recorded at 5445158.
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, 2264170 shares of RAI exchange hands on a given day and today's volume is recorded at 3290409.
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