WAit & see.
Two of the three biggest tobacco companies, Reynolds American and Lorillard, sent shockwaves through the financial world Friday when they announced they were in talks about a possible merger. If the deal goes through, Reynolds, the maker of Camel cigarettes, would buy Lorillard, best known for its popular menthol cigarette, Newport.
It’s a complex deal with many factors at play, and there’s always a chance it won’t be completed. But the most surprising thing about the potential deal is that it marks the first time electronic cigarettes were one of the driving factors in merger talks between two tobacco companies.
“This transaction in our view will be very positive for the global tobacco industry and could be the just the beginning of future transactions with e-cigs/vapor being the underlying catalyst,” wrote Wells Fargo analyst Bonnie Herzog of the deal. That’s a pretty big milestone when you consider that the first…
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