FTC May Meet With RJR and Lorillard on Merger This Week

WINSTON-SALEM—We could see a decision this week on the proposed merger of Reynolds and Lorillard.

The Wall Street Journal reports the two companies are expected to meet this week with the FTC on their proposed merger.

In January shareholders of Winston-Salem based Reynolds American and Greensboro-based Lorillard approved the $27 billion merger that was announced in July. The move would strengthen Reynolds No. 2 position behind Altria Group, the maker of top-selling Marlboros.

The move would bring the well-known Camel and Newport brands under one roof—with Lorrilard's Greensboro production facilities and Blu e-cigs being sold to the U-K's Imperial Tobacco -- along with Winston, Salem and Kool brands.

Reynolds would keep Vuse, the company's e-cigarette brand. The company has said it would add to its workforce, increasing production at its Tobaccoville Plant.              

The FTC has spent months looking over the proposal -- one concern has been the possible impact on competition and pricing.

The Wall Street Journal reports that Reynolds American and Lorillard are expected to meet with members of the Federal Trade Commission this week, ahead of a final decision on their proposed merger. The meetings will allow staffers to get first hand answers about any questions they have, prior to making a decision.

A Reynolds spokeswoman delined to comment on the report.