Shareholders Ok Tobacco Firm Reynolds' Deal To Buy Lorillard

The deal announced in July would combine two of the nation's oldest and biggest tobacco companies, creating a formidable No. 2 to Richmond, Virginia-based Altria Group Inc., owner of Philip Morris USA. Expected to close in the first half of 2015, the merger faces further federal antitrust scrutiny over how the combination would affect competition in a highly competitive market and cigarette prices, which have grown about 5 percent annually in the last 10 years. The companies also have said they may need to give Reynolds' Doral brand to Imperial Tobacco — for no additional cost — if mandated by federal regulators or if retail market share of the other brands fall below 4.9 percent.

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