A PYMNTS Company

US: FTC to meet with RJR and Lorillard ahead of merger

By  |  March 30, 2015

The Wall Street Journal reports the two companies are expected to meet this week with the FTC on their proposed merger.

In January shareholders of Winston-Salem based Reynolds American and Greensboro-based Lorillard approved the $27 billion merger that was announced in July. The move would strengthen Reynolds No. 2 position behind Altria Group, the maker of top-selling Marlboros.

The move would bring the well-known Camel and Newport brands under one roof—with Lorrilard’s Greensboro production facilities and Blu e-cigs being sold to the U-K’s Imperial Tobacco — along with Winston, Salem and Kool brands.

Reynolds would keep Vuse, the company’s e-cigarette brand. The company has said it would add to its workforce, increasing production at its Tobaccoville Plant.

The FTC has spent months looking over the proposal — one concern has been the possible impact on competition and pricing.

 

Full Content: The Wall Street Journal

 

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.