FTC clears Reynolds to inhale Lorillard for $27B by end of June скачать в хорошем качестве

FTC clears Reynolds to inhale Lorillard for $27B by end of June

Reynolds American Inc. (RAI) and Lorillard Inc. (LO) were granted approval late Tuesday by the Federal Trade Commission to complete the previously announced $27.4 billion merger. In connection with the transaction, the FTC requires that the second- and third-largest U.S. cigarette makers unload four brands to Imperial Tobacco Group plc, including Reynolds' Winson, Kool and Salem, and Lorillard's Maverick. The brands being divested have suffered market share and it remains to be seen whether Imperial, which currently has a fairly minimal presence in the U.S., will be able to reignite growth in the group of assets. The international tobacco manufacturer will also gain Lorillard's manufacturing facilities in Greensboro, N.C. The mega merger between the maker of Camel cigarettes and Newport menthols was initially announced in July 2014. The industry leader in the U.S. is Altria Group Inc., the maker of Marlboro cigarettes, which presently holds an approximately 49% market share. According to the FTC complaint, without the divestiture to Imperial, the proposed would likely eliminate current and emergent, head-to-head competition between Reynolds and Lorillard in the U.S. market for "traditional combustible cigarettes." It also increases the likelihood that the merged firm would unilaterally raise prices, and that Reynolds and Altria, as the remaining two large competitors in an already concentrated industry, would engage in coordinated interaction. Imperial is an international tobacco manufacturer with a competitive presence in about 70 countries, but a relatively small presence in the U.S. By acquiring the designated assets, Imperial would become a more substantial competitor here, the FTC said. In her dissenting statement, Democratic Commissioner Brill said Imperial's 10% market share post-transaction will be too small to offset the combined 83% market share that Altria and the combined Reynolds/Lorillard will hold. For more visit: www.thedeal.com