Reynolds American, Lorillard Confirm Merger Talks

Multibillion-Dollar Deal Would Reshape Tobacco Industry, Create Bigger Rival to Altria

Updated July 11, 2014 2:06 p.m. ET

Reynolds American Inc. is nearing a deal to acquire Lorillard Inc. that, if successful, would transform the U.S. tobacco industry and put additional corporate muscle behind the already hot electronic-cigarette market.

The companies on Friday confirmed talks about a deal that would combine Reynolds' Camel and Pall Mall cigarettes with Lorillard's popular Newport menthol brand to create a more powerful No. 2 to U.S. industry leader...

Available to Subscribers