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US: Mega tobacco merger meets FTC concern

By  |  September 1, 2014

The US Federal Trade Commission has reportedly issued a second request for information to two major US tobacco companies as the authority reviews their plans to merge.

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    Reynolds American and Lorillard agreed last month to merge in a $25 billion transaction, but the firms announced late last week that the FTC is seeking more information regarding the deal. The cigarette makers said they are cooperating fully with regulators and said that the second request does not change their timeline for the deal.

    The companies said they expect to finalize their merger in the first half of next year.

    Reynolds will acquire Lorillard in a plan that would leave the US with just two tobacco rivals that control 90 percent of the industry. According to reports, the companies have already offered to sell some brands including Kool and Blu e-cigarettes for $7.1 billion to competitor Imperial Tobacco Group, based in the UK, to appease competition concerns.

    Full content: Daily Herald

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