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US: Experts expect $27B cigarette deal to create duopoly

By  |  July 15, 2014

Some analysts predict that should the proposed $27.4 billion acquisition of Lorillard by rival Reynolds American could create a duopoly in the nation’s cigarette market.

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    Reports of the merger first emerged in May, and the deal is expected to face intense antitrust scrutiny.

    Reports say number-two Reynolds, which makes Camel and Pall Mall, controls about 25 percent of the industry; Lorillard, which makes Newport menthols, controls about 15 percent. Together, one analyst sais, the two create a duopoly.

    After the merger, top competitor Altria would be the only significant rival to the merged company; Altria controls about half of the market, according to reports.

    But some experts say the merger is crucial to the companies as they face falling demand.

    Full content: Newser

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