The deal, announced Tuesday, combines the second- and third-largest American tobacco companies, creating a cigarette behemoth with a projected $11-billion-plus in annual revenue. The cash, stock and debt transaction is likely to face scrutiny from regulators, analysts said.
FOR THE RECORD
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If the deal closes, the combination of Reynolds, of Winston-Salem, N.C., and Lorillard, of Greensboro, N.C., would be a strong challenger to Altria, the nation's largest tobacco products maker and parent of Philip Morris.
Reynolds, the nation's second-largest tobacco firm, adds Lorillard's Newport brand to its lineup of Camel and Pall Mall cigarettes. Newport is the nation’s most popular menthol cigarette.
“The addition of Newport … will enhance our ability to compete in the combustible cigarette and smokeless categories,” Reynolds Chief Executive Susan Cameron said in a statement.