Reynolds American Inc will purchase Lorillard Inc for $25 billion, merging two of the world's biggest cigarette makers in a deal that includes the sale of the top-selling U.S. e-cigarette to Britain's Imperial Tobacco Group .The deal, which gives Reynolds control of Newport menthol cigarettes, strengthens the combined company's hand in competing for a shrinking pool of smokers and sets up a three-way battle with Marlboro-maker Altria Group Inc for the e-cigarette market.Imperial's purchase of the blu e-cigarette brand, as well as Reynolds' Salem, Winston and KOOL and Lorillard's Maverick brands, is meant to ease potential antitrust concerns from the marriage of the No. 2 and No. 3 U.S. tobacco companies.While cigarette sales volumes have been falling about 4 percent a year, e-cigarette sales have been booming.
Lorillard, Inc. (Lorillard) is the manufacturer of cigarettes in the United States. Shares of LO fell by 7.77% or $-5.225/share to $62.00. 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 10698944.
Altria Group, Inc., is a holding company. At December 31, 2012, Altria Group, Inc. Shares of MO fell by 2.71% or $-1.175/share to $42.18. In the past year, the shares have traded as low as $33.12 and as high as $43.70. On average, 7255570 shares of MO exchange hands on a given day and today's volume is recorded at 5740762.
Reynolds American Inc. (RAI) is a holding company. Shares of RAI fell by 4.73% or $-2.99/share to $60.19. 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 4058230.
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