After a federal court ruled earlier this month that major tobacco companies must launch advertisements to correct past statements about the health effects of their products, reports say the industry could be set for a round of consolidation.
According to reports, major tobacco firms preferred to keep themselves separate from their counterparts operating outside the US, as non-American tobacco firms faced much less threat of litigation. But as experts conclude that tobacco firms’ risk in the US has similarly been reduced in recent years, reports say a wave of merger and acquisition activity could strike the industry, even after the court will require the companies to launch their ads to apologize for “deliberately deceiving” the public regarding their products.
According to reports, the UK’s British American Tobacco could merge with Reynolds American, which manufacturers the Camel brand cigarette. In a recent presentation to shareholders, Reynolds American has reportedly found that pending smoking and health” lawsuits have dropped from 352 to just 69 in the last 13 years.
Full Content: CNBC
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Redfin Settles $9.2M Commission Inflation Lawsuits
May 7, 2024 by
CPI
DOJ Supports Colorado’s Efforts to Block Kroger-Albertsons Merger
May 7, 2024 by
CPI
Japan Considers Regulation of AI Developers
May 7, 2024 by
CPI
European Commission Extends Decision Deadline for Ita-Lufthansa Merger
May 7, 2024 by
CPI
UK, US and Australia Sanction Senior Leader of LockBit Cybercrime Gang
May 7, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI