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...such devices since 2008 with most going towards its heated tobacco product IQOS, while Imperial spent $7.1bn acquiring the vaping brand Blu (along with a handful of other tobacco assets) from RJ Reynolds-Lorillard...
...Less than three months later, RAI unveiled plans to buy Lorillard for $27.4bn in a complex four-way deal....
...The North Carolina company – which makes Camel, Pall Mall, Natural American Spirit and, following its acquisition last year of rival Lorillard, Newport brands – on Wednesday reported third-quarter net income...
...Reynolds completed a $27bn merger with Lorillard last year, making it the second-largest US tobacco company by sales with 35 per cent market share, behind Altria....
...It is understood that BAT was waiting for Reynolds to complete its $27bn merger with Lorillard, the maker of Kent and Newport cigarettes, before deciding whether to move....
...Two years ago, Reynolds combined with Lorillard, another major US rival, in a transaction that saw BAT inject around $4.7bn to retain the size of its holding....
Tobacco companies are lukewarm about ecigarettes, with good reason
...The acquisition of Lorillard enabled Reynolds to recapture lost share....
...Reynolds’ $25bn purchase of Lorillard will increase its US market share to around 34 per cent, while Imperial’s side deal to buy divested brands has given it a US share of more than 10 per cent....
...Other deals that are expected to generate large fees for the bank but are still waiting for regulators’ approval include AT&T’s $67.1bn acquisition of DirecTV and Reynolds American’s $27.4bn acquisition of Lorillard...
...Lorillard, whose Newport brand of menthol cigarettes account for 80 per cent of its sales, rose 2.8 per cent to $69.25, just 20 cents off its record high....
...Reynolds American recently completed its acquisition of Lorillard, with some brands from those two companies sold to Imperial Tobacco’s US subsidiary, while Japan Tobacco this week announced it is to buy...
...Last year Lorillard bought Skycig, the UK-based electronic cigarette business for $48.6m....
...Cigarette makers Lorillard and Reynolds, in which British American Tobacco owns a significant minority stake, struck a complicated four-party deal that also involved Imperial Tobacco....
...worked on some of the largest deals of 2014, including AT&T’s $67bn acquisition of DirectTV, Walgreens’ $37bn purchase of its remaining stake in Alliance Boots and the $27.4bn four-way transaction between Lorillard...
...Yet Lorillard fell 10 per cent on the announcement, trading at $60 a share by close compared with $68 offered....
...Imperial on Friday confirmed it was “in discussions with Reynolds and Lorillard to evaluate a possible acquisition of certain assets and brands owned by Reynolds and Lorillard”....
...Analysts also speak of annual cost savings of anywhere between $300m and $500m for Reynolds-Lorillard....
...Reynolds American is buying Lorillard for $27.4bn in a complex four-way deal that will reshape the $90bn US tobacco market....
...In a submission to the FDA, Lorillard said ecigarettes “hold the potential to advance the public health” and that regulation must not inhibit the continued development of the market....
...Analysts applauded the deal, which involved Imperial paying less than many had expected for US cigarette brands such as Winston, Kool and Salem from Lorillard, which was itself bought out by US-rival Reynolds...
...The deal – the centrepiece of which is Reynold’s $27.4bn acquisition of Lorillard – should reshape the tobacco industry by bringing many of the world’s best-known brands under common ownership....
...She added that Wells Fargo continued “to believe the chances are great” that Lorillard would be acquired by Reynolds....
...Lorillard, whose Blu Ecigs brand accounts for nearly half of the US market, said ecigarette sales fell 10.5 per cent in the first quarter....
...cigarette with 12 per cent US market share – with Imperial acquiring Reynolds’ secondary brands and Lorillard’s facilities....
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