Breaking News Bar
updated: 8/29/2014 8:34 AM

Reynolds-Lorillard deal to undergo additional antitrust scrutiny

Success - Article sent! close
Bloomberg News

Reynolds American Inc. and Lorillard Inc., the U.S. tobacco companies that agreed to a $25 billion merger last month, received requests for additional information on the deal from antitrust regulators.

Each company received a so-called second request from the Federal Trade Commission, according to a statement from the cigarette makers today. Reynolds and Lorillard said they would cooperate with the agency and continue to expect the transaction to be completed in the first half of next year.

Order Reprint Print Article
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.
Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Success - request sent close

Reynolds's acquisition of Lorillard, announced on July 15, would leave the 400-year-old U.S. tobacco industry with two competitors controlling 90 percent of the market. The companies attempted to soothe antitrust concerns by agreeing to sell brands such as Kool and Blu e-cigarettes for $7.1 billion to Imperial Tobacco Group Plc, a British company that's pushing deeper into the U.S. industry. Altria Group Inc. remains the market leader.

David Balto, a Washington attorney and former policy director for the FTC, said last month that the deal would face serious scrutiny. Selling off the minor brands to Imperial may not be enough, he said.

Share this page
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.