Reynolds American, Lorillard Seal Tobacco Merger With UK Assist

TheStreet

Reynolds American and Lorillard are smoking up a merger that, with debt, is valued at $24.7 billion. But the makers of such iconic American cigarette brands as Camel, Pall Mall and Newport are also involving their counterparts across the pond. The merger partners are selling $7.1 billion of assets to Britain's Imperial Tobacco. That includes more brands usually identified with America like Kool and Salem. And Reynolds shareholder, British American Tobacco, will invest $4.7 billion to keep its 42% stake. It's a reverse of the American revolution -- while it may be an all-American merger, the British are definitely coming. The Deal's Paula Schaap reports from Wall Street.