Imperial Tobacco looking at Reynolds and Lorillard assets

11th Jul 2014 08:18

Imperial Tobacco confirmed it is discussions with Reynolds American, the maker of Camel cigarettes, and Lorillard about the potential acquisition of some of their assets and brands. Reynolds is 42%-owned by FTSE 100-listed British American Tobacco. The potential transaction is reportedly being discussed as part of a larger transaction that could see Reynolds acquire Lorillard. According to Bloomberg, "people with knowledge of the matter" have suggested a deal could be announced as soon as next week. The sources also explained that a purchase by Imperial would prevent the US government from having antitrust concerns about the deal. They were further quoted as having put a price tag of as much as $7bn on the potential acquisition by Imperial. In a brief statement, Imperial said that the US it would only go ahead with an acquisition "if its terms met strict transaction criteria". It added that there was "no certainty" about the terms of any acquisition that might potentially be agreed, or of any related debt financing.NR