The historic purchase by Reynolds American Inc. of Lorillard Inc. has a closing date — Friday — after a federal judge signed off Monday on the manufacturers selling five brands to Imperial Tobacco Group Plc.
Judge Gladys Kessler’s decision was the final legal hurdle to a megadeal announced in July 2014 and valued at $29.1 billion Monday. Reynolds is essentially buying Newport, the top-selling U.S. menthol brand.
Under the terms of the federal District Court’s remedial order in 2006, the court had to enter an order finding that ITG Brands, Imperial’s U.S. subsidiary, intends to and is capable of complying with the order before Reynolds can transfer the four cigarette brands.
The Federal Trade Commission voted 3-2 on May 26 to give the deal preliminary approval.
Reynolds spokesman David Howard said Monday that the FTC’s 30-day public comment period “does not preclude the companies from proceeding with closing.” Howard expressed confidence Reynolds will be “ready to hit the ground running” with integration starting Friday.
The deal’s final value will be set at the close of market trading Thursday. Reynolds is projected to have more than $11 billion in annual revenues.
“We are very pleased to be able to proceed with this transformative acquisition,” Susan Cameron, Reynolds’ president and chief executive, said in a statement.
“With the addition of Lorillard’s strong Newport brand, Reynolds’ operating companies will have brand portfolios that reflect diversification and strength across product categories and across geographies.”
R.J. Reynolds Tobacco Co. will have the No. 2-4 U.S. traditional cigarette brands in Newport, Camel and Pall Mall, respectively.
QUANTUM BINARY SIGNALS
ReplyDeleteGet professional trading signals sent to your mobile phone every day.
Follow our signals today and gain up to 270% per day.