FTC Requests Additional Info from Reynolds American (RAI), Lorillard (LO) on Pending Deal

August 29, 2014 8:02 AM EDT

Reynolds American Inc. (NYSE: RAI) and Lorillard, Inc. (NYSE: LO) announced that each company has received a request for additional information ("second request") from the Federal Trade Commission ("FTC") in connection with Reynolds American's pending acquisition of Lorillard and divestiture of select brands to Imperial Tobacco Group, PLC (LON: IMT). The second request was issued under notification requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "HSR Act") and is a normal part of the regulatory review process.

The effect of the second request is to extend the waiting period imposed by the HSR Act until 30 days after Reynolds American and Lorillard have substantially complied with the request, unless that period is extended voluntarily by both parties or terminated sooner by the FTC. Reynolds American and Lorillard will continue to cooperate fully with the FTC as it conducts its review of the proposed acquisition and divestiture. In addition to the expiration of the waiting period under the HSR Act, both the Reynolds American acquisition of Lorillard as well as the Imperial transaction remain subject to shareholder and other approvals, as well as other customary closing conditions. The companies continue to expect the transactions to close in the first half of 2015.

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