NEW YORK (TheStreet) -- Imperial Tobacco Group (ITYBY) is looking at a deal for assets likely to be divested from Reynolds American Inc. (RAI) and Lorillard Inc. (LO) if the two tobacco companies move forward with a proposed combination, sources say, Reuters reports.
The two U.S. companies are in advanced talks about a merger.
The companies have discussed divesting some brands to address potential antitrust concerns.
Imperial, based in the U.K., has held discussions about acquiring these brands and is working with advisers to study the deal, sources added, Reuters said.
Imperial stock is up 1.20% to $89.67.