U.S. cigarette maker Reynolds American Inc is in talks to acquire rival Lorillard Inc in a multi-billion dollar deal that would reshape one of the world's biggest and most profitable tobacco markets, the companies said on Friday.A deal would also involve the sale of some brands to Britain's Imperial Tobacco Group to address potential antitrust concerns, as well as the purchase of more shares in Reynolds by British American Tobacco (BATS), its largest shareholder.In a statement confirming what people familiar with the matter previously told Reuters, Reynolds, No.2 player in the United States with brands including Camel and Pall Mall, said the talks were consistent with its strategy of weighing options that would help boost shareholder value.Buying Lorillard, which had a stock market value of $22.9 billion on Thursday, would give Reynolds the leading U.S. menthol cigarette Newport and its leading e-cigarette blu.
Lorillard, Inc. (Lorillard) is the manufacturer of cigarettes in the United States. Shares of LO traded higher by 3.61% or $2.28/share to $65.37. In the past year, the shares have traded as low as $41.56 and as high as $65.39. On average, 3030530 shares of LO exchange hands on a given day and today's volume is recorded at 7789132.
Reynolds American Inc. (RAI) is a holding company. Shares of RAI fell by 2.18% or $-1.36/share to $60.90. In the past year, the shares have traded as low as $46.55 and as high as $63.39. On average, 2230330 shares of RAI exchange hands on a given day and today's volume is recorded at 2369933.
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