Reynolds American, Inc. (RAI) & Lorillard Inc. (LO) By The Numbers

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In light of Reynolds American, Inc.’s (NYSE:RAI) bid to buy Lorillard Inc. (NYSE:LO), Bloomberg recently looked into statistics of the tobacco industry in a short clip.

Both Reynolds American, Inc. (NYSE:RAI) and Lorillard Inc. (NYSE:LO) have confirmed that they are in talks for a merger. This isn’t the first time these two companies have been mentioned in M&A talks, however, as this March, it was also reported that Reynolds American, Inc. is exploring a bid for Lorillard Inc.

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Meanwhile, as Bloomberg looked at both companies, the video they produced indicated that the combined market share of Reynolds American, Inc. (NYSE:RAI) and Lorillard Inc. (NYSE:LO) in the U.S. is 38%. This is compared to Altria Group Inc’s (NYSE:MO) 47%. Altria Group Inc is behind the companies Philip Morris USA Inc., John Middleton Co., and UST LLC which owns U.S. Smokeless Tobacco Company LLC and Ste. Michelle Wine Estates Ltd.

Reynolds American, Inc. (NYSE:RAI) owns R. J. Reynolds Tobacco Company, American Snuff Company, LLC, Santa Fe Natural Tobacco Company, Inc., and Niconovum AB. The company is responsible for the Camel, Pall Mall and Natural American Spirit brands. Lorillard Inc. (NYSE:LO) is the maker of Newport, Kent, True, Maverick and Old Gold cigarettes.

If market share by brand is compared, Marlboro which is made by Altria has 40% of the market. Newport has 12% while Camel has 8%.

See the video below for breakdown of demographics for brands and statistics concerning electronic cigarettes.

 

Reynolds American, Inc. (NYSE:RAI) shareholders includes Ken Griffin’s Citadel Investment Group which reported about 2.31 million shares in the company by the end of March. Another shareholder is David Winters’ Wintergreen Advisers which said by the end of the first quarter that it held about 2.11 million shares in the cigarette-maker.

Lorillard Inc. (NYSE:LO) investors includes the hedge fund Winton Capital Management managed by David Harding. The firm reported by the end of the first quarter of the year that it had about 1.09 million shares in the company. Antler investor is Adage Capital Management managed by Phill Gross and Robert Atchinson which said by the same period that it held 562,007 shares in the company.

 

Disclosure: None

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