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Reynolds to pay $27.4B for Lorillard

Jul 15, 2014 - The Deal Pipeline
Mergers and Acquisitions

Camel maker Reynolds American Inc. said Tuesday it had agreed to buy Newport producer Lorillard Inc. for $27.4 billion, including assumed debt, in a complex deal that hands a supporting role to the U.K.'s two leading tobacco companies.

The two North Carolina tobacco groups said they had forged a firm agreement for Reynolds to pay $68.88 per Lorillard share, breaking down into $50.50 in cash and 0.2909 of a Reynolds share. As part of the deal, British American Tobacco plc will invest $4.7 b...