Reynolds American, manufacturer of Camel cigarettes, leads negotiation of purchasing his competitor Lorillard. Primary shareholder Reynolds – British American Tobacco (BAT) will approve the Transaction.
Negotiations match strategy, which aims to increase shareholder value. In the process also involved the British Imperial Group as a potential buyer of brands and other assets of Reynolds and Lorillard. More than just interest group Kool, Winston and Salem, experts say.
R.J. Reynolds Tobacco Company is the second largest tobacco company in the US. It owns brands Winston, Kool, Doral, Salem, Misty, Capri and two top-selling brand in the US market – Camel and Pall Mall. Lorillard manufactures cigarettes under the brand names Newport, Kent, True, Maverick, Old Gold, blu eCigs and SKYCIG.
Experts estimate the cost of the combined company at about 56 billion dollars and annual sales – to $ 13 billion. Reynolds and Lorillard can compete with the US market leader Altria Group. Its market share exceeds 50%, and the main brand Marlboro accounts for 44%.