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US: FTC looking into Reynolds-Lorillard deal

By  |  March 15, 2015

Antitrust enforcers are asking detailed questions about business plans and leadership of a third company that plays a key role in Reynolds American Inc.’s proposed $25 billion acquisition of Lorillard Inc., underscoring the extra care the government is taking after a rocky experience with a rental-car merger.

Reynolds and Lorillard have sought to head off government antitrust concerns by selling $7.1 billion in cigarette brands and other assets to Imperial Tobacco Group, a U. K.-based global tobacco company that operates in more than 20 markets, including Germany, Australia, Cambodia, and Turkey. The idea behind the divestiture, announced in tandem with the merger in July, was to give Imperial a significant U.S. presence that could replace market competition previously provided by Lorillard.

 

Full Content: The Wall Street Journal

 

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