WINSTON-SALEM, N.C. -- Lorillard Inc. and Reynolds American Inc. confirmed Friday morning they are engaged in discussions regarding a potential acquisition.
The discussions center on Winston-Salem-based Reynolds buying Greensboro-based Lorillard.
The discussions are consistent with RAI’s strategy of considering a variety of options to enhance shareholder value. British American Tobacco (BAT), RAI’s largest shareholder, is participating in these discussions.
If the transaction does proceed, BAT expects to support the transaction by subscribing for additional shares in RAI and would maintain its existing 42 percent equity position in RAI.
Both companies stressed that no agreement has been reached and there are no assurances that any transactions will result.