FTC Staff May Urge Blocking RJR Merger

The staff of the Federal Trade Commission may urge commissioners to try to block R.J. Reynolds Tobacco Holdings Inc.’s $3-billion purchase of British American Tobacco’s Brown & Williamson unit, a newsletter reported.

The agency’s staff may be concerned that combining the two companies’ menthol brands may restrict competition and lead to price increases, Art Amolsch, editor of FTC:Watch, said.

Shares of R.J. Reynolds, which makes Salem and Camel cigarettes, fell $1.37 to $63.15 on the NYSE. British American Tobacco shares fell 52 cents to $30.48 on the American Stock Exchange.