CNBC Says Tobacco Giants Reynolds American And Lorillard Will Announce A Merger By The End Of The Month
M&A activity is booming.
CNBC's David Faber is reporting that tobacco giants Reynolds American and Lorillard will merge by the end of the month.
The deal, which Faber notes had previously been discussed and reported, now appears to be back on the table and close to coming together.
Following Faber's report, shares of Lorillard were up as much as 5% and shares of Reynolds American were up more than 1%.
This report comes amid what has been a big and busy year for merger activity already, with $750 billion worth of merger deals announced in the first half of the year.
Lorillard and Reynolds currently have market caps of about $23 billion and $33 billion, respectively, and this deal coming together would keep the M&A boom in tact.
This chart shows the pop in shares of Lorillard after Faber's report.
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