This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Reynolds American Confirms Discussions to Buy Smaller Rival Lorillard


WATCH: More market update videos on TheStreet TV | More videos from Brittany Umar

NEW YORK (TheStreet) -- Cigarette-maker Reynolds American  (RAI - Get Report) confirmed it's in talks to buy smaller rival Lorillard  (LO - Get Report), although both companies said there is no guarantee an agreement will be reached.

VIDEO TRANSCRIPT:

Cigarette-maker confirmed on Friday that it's in talks to buy smaller rival Lorillard, following months of speculation about a potential deal.

In separate statements, the companies said there is no guarantee an agreement will be reached.

The deal would require approval by London-based British American Tobacco (BTI), as it owns 42% of Reynolds American.  Reynolds said on Friday that is involved in the merger discussions and expects to support it.

A combination of the two companies stands to largely change the landscape of the tobacco industry.  Imperial Tobacco Group said it was in talks to buy some Reynolds and Lorillard brands if the merger occurs.  It would also put pressure on Philip Morris USA, a division of Altria (MO - Get Report), which is the largest U.S. tobacco maker.  That's on top of shrinking demand for cigarettes in the U.S. as some smokers turn to alternatives like e-cigarettes, of which Lorillard says it holds a 45% dollar market share due to its blu eCigs brand.

In New York, I'm Brittany Umar for TheStreet.

-- Written by Brittany Umar in New York.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BTI $115.74 0.00%
LO $68.49 0.00%
MO $56.50 0.00%
RAI $75.88 0.00%
AAPL $129.09 0.00%

Markets

DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs