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Reynolds to buy Lorillard in $27bn deal

Camel cigarettes maker Reynolds American Inc said it would buy rival Lorillard in a cash-and-stock deal valued at $27.4 billion, including net debt.

Reynolds offered $68.88 per Lorillard share, representing a premium of 2.5 percent to Lorillard's Monday closing.

Camel cigarettes are stacked on a shelf inside a tobacco store in New York July 11, 2014. US cigarette maker Reynolds American Inc is in talks to acquire rival Lorillard Inc in a multi-billion dollar deal that would reshape one of the world's biggest and most profitable tobacco markets, the companies said on Friday. In a statement confirming what people familiar with the matter previously told Reuters, Reynolds, No.2 player in the United States with brands including Camel and Pall Mall, said the talks were consistent with its strategy of weighing options that would help boost shareholder value. Buying Lorillard, which had a stock market value of $22.9 billion on Thursday, would give Reynolds the leading US menthol cigarette Newport and its leading e-cigarette blu. Buying Lorillard, which had a stock market value of $22.9 billion on Thursday, would give Reynolds the leading US menthol cigarette Newport and its leading e-cigarette blu. Credit: Reuters

Reynolds also said it would sell its KOOL, Salem, Winston, Maverick and blu eCigs brands and other assets to Imperial Tobacco Group for $7.1 billion in cash. - Reuters

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