July 3 Tobacco majors Lorillard Inc and
Reynolds American Inc are likely to merge as early as
end of July, CNBC reported, citing sources.
Reuters, in May, exclusively reported that Reynolds American
was in active discussions to buy Lorillard in a complicated,
three-way transaction that could see British American Tobacco
PLC take a major role to back a potential merger.
Lorillard share rose as much as 6.2 percent, while those of
Reynolds American were up nearly 3 percent.
Imperial Tobacco Group Plc was evaluating a deal for
assets likely to be divested from Reynolds American and
Lorillard if the two U.S. tobacco companies proceed with a
proposed combination, Reuters reported last month.
Lorillard had a market capitalisation of $22.17 billion as
of Wedesday's close, while Reynolds' market value was $32.25
(Reporting by Shailaja Sharma in Bangalore; Editing by