By Tripp Mickle
Shareholders of Reynolds American Inc. and Lorillard Inc. have
voted to approve Reynolds' $25 billion acquisition of
Lorillard.
The transaction, which combines the country's second largest
player in the tobacco industry, Reynolds, and the third largest,
Lorillard will still need regulatory approval before it can be
completed. The Federal Trade Commission is expected to weigh in
later this quarter.
Investors have expressed skepticism the FTC will approve the
deal. Lorillard's stock opened Wednesday at $65.77, about 7% below
the deal's closing price. Two analysts said the market gives the
deal about a 60% chance of closing.
To clear antitrust hurdles, Reynolds struck a deal to sell four
cigarette brands and an e-cigarette brand to Imperial Tobacco Group
TLC for $7 billion. Shareholders of Imperial on Wednesday are
expected to vote on the acquisition of those brands, which will
turn the company into the No. 3 player in the U.S., the world's
most profitable tobacco market, with a 10% share.
Write to Tripp Mickle at Tripp.Mickle@wsj.com
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