Lorillard (LO) Near Merger with Reynolds American to Sell Assets to Imperial Tobacco
Shares of the Lorillard Tobacco Company (LO) were up +3.41 or +5.40 percent to $66.50 per share in pre-market trading this morning. The stock is up after news early today that revealed Imperial Tobacco had confirmed it was in talks with Lorillard and Reynolds American (RAI) in relation to the acquisition of some of the two companyâ s assets.
Also, according to some sources, Reynolds American and Lorillard were close to a merger deal, which could be announced as soon as later today or early next week. Lorillard stock closed at $63.09, up +0.08 or +0.13 percent in Thursdayâ s regular trading session.
Greensboro, North Carolina based Lorillard Tobacco Company was founded in 1760 and is primarily involved in the production of cigarettes and other tobacco products. The company is best known through its principal products marketed under the brands, Kent, Newport, True, Maverick and Old Gold. Lorillard acquired electronic cigarette company blu ecigs in April of 2012, making it the first big tobacco company to enter the electronic cigarette arena. Winston-Salem, North Carolina based Reynolds American is the second largest tobacco company in the United States after Phillip Morris International (PM
), and is the result of the July, 2004 merger of British American Tobacco, also known as Brown and Williamson and the R.J. Reynolds Tobacco Company or R.J. Reynolds. The company also owns the American Snuff Company and Santa Fe Natural Tobacco Company and in 2010, was responsible for 28 percent of all cigarettes sold in the United States. Bristol, UK based Imperial Tobacco Group plc is the worldâ s fourth largest tobacco company by market share and the worldâ s largest producer of fine cut tobacco, tobacco papers and cigars. The company annually produces more than 320 billion cigarettes with 51 factories in 160 countries. Its best known brands include, Montecristo and Davidoff cigars, Golden Virginia and Drum rolling tobaccos and Rizla, the worldâ s best selling cigarette paper. The UK based Financial Times reported this morning that Lorillard and Reynolds American were set to merge in a deal that would create a combined company worth approximately $56 billion. In addition, the newspaper also said that Lorillard, and British American Tobacco â
Published on Jul 11, 2014
By Jay Hawk