WINSTON-SALEM—Shareholders quickly gave the green light for the merger of two NC-based tobacco companies on Wednesday.
They voted to approve the $27 billion deal between Reynolds American and Lorillard. The deal still needs the approval of the Federal Trade Commission, which is expected in the first half of the year. The Reynolds shareholders meeting was held in Winston-Salem and the Lorillard shareholders meeting was held in Charlotte.
The merger will strengthen Reynolds position as the nation's second largest tobacco company, behind the Richmond-based owner of Phillip Morris. Reynolds will add Lorillard's Newport to Reynolds' popular Camel and Pall Mall brands and its up-and-coming Vuse e-cigarettes.
The company will have to spin off Reynolds signature Winston and Salem brands, named after its hometown, along with Kools and Lorillard’s Blu e-cigs to take care of regulatory concerns. Those are slated to go to U.K. based Imperial Tobaccco, along with Lorillard’s Greensboro manufacturing facilities which have close to 2,900 employees.
Reynolds has around 5,000, with around 2,000 in the Triad. There is currently no information on what impact the merger will have on staffing.