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Reynolds American Inc. Buys Lorillard Inc. for $27 Billion


Reynolds American Inc. is acquiring Lorillard Inc. for $25 billion, a deal that brings two of the world’s biggest cigarette makers together. The deal also includes the sale of the top selling U.S. e-cigarette company to Britain’s Imperial Tobacco Group. Reynolds now controls Newport menthol cigarettes, which gives the company more leverage in competing for a shrinking pool of smokers. While cigarette sales have been fallings about 4% per year, e-cigarette sales have been through the roof. E-cigarettes make roughly $2 billion a year in sales in the United States, and some industry analysts are expecting sales to surpass the $85 billion cigarette market in less than a decade.