Reginal Thomas
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Imperial Tobacco Group Plc Buys E-Cigarette Brand Blu

Imperial Tobacco Group Plc is going to buy the leading U.S. e-cigarette brand Blu as part of its $7.1 billion purchase of cigarette brands, sold as part of the Reynolds American Inc.’s $27.4 billion purchase of Lorillard Inc. Imperial’s acquisition is meant to stop any potential antitrust problems between the deal of the U.S.’s number 2 and number 3 tobacco firms. It also gives the company control over brands such as Maverick, Salem as well as the international and U.S. rights to Blu e-cigarettes; which already controls 40% of the e-cigarette market. Philip Gorham, an analyst for research firm Morningstar, said “Blu was probably the sweetener that persuaded them to pick up what can probably most politely be described as third tier brands.”