Cigarette giant Reynolds American Inc. agreed to purchase rival Lorillard Inc. for $27.4 billion, gobbling up additional market share as Americans smoke less.
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
An earlier version of this post said Imperial Tobacco Group was buying Reynolds’ Maverick and Blu eCigs brands. Those brands belong to Lorillard, and Lorillard is selling them. The...