Reynolds American - Lorillard Deal To Close On June 12

(RTTNews) - Reynolds American Inc. (RAI) and Lorillard, Inc. (LO) announced that the final significant condition pending before RAI can proceed with its acquisition of Lorillard and complete the related divestiture transactions has been successfully completed.

The companies expect to complete the acquisition and the related transactions in which operating companies of RAI and Lorillard will divest certain brands and other assets to ITG Brands on June 12, 2015, subject to the satisfaction of remaining closing conditions.

The federal district court overseeing a remedial order in relation to a lawsuit brought by the U.S. Department of Justice against subsidiaries of RAI and Lorillard, along with other companies, has approved the sale of certain cigarette brands and businesses to Imperial Tobacco's ITG Brands, LLC subsidiary.

As previously disclosed on July 15, 2014, RAI and Lorillard announced an agreement in which RAI agreed to acquire Lorillard in a cash-and-stock transaction. At closing, Lorillard shareholders will receive $50.50 in cash and 0.2909 of a share of RAI stock for each share of Lorillard stock they own.

Also on July 15, 2014, RAI and Lorillard announced agreements for their operating companies to sell the KOOL, Salem, Winston, Maverick and blu eCigs brands and other assets and liabilities to a subsidiary of Imperial Tobacco Group, PLC for a total consideration of approximately $7.1 billion in cash.

As part of the transactions, British American Tobacco p.l.c. will maintain its approximately 42 percent ownership in RAI through an investment of approximately $4.7 billion.