Some analysts predict that should the proposed $27.4 billion acquisition of Lorillard by rival Reynolds American could create a duopoly in the nation’s cigarette market.
Reports of the merger first emerged in May, and the deal is expected to face intense antitrust scrutiny.
Reports say number-two Reynolds, which makes Camel and Pall Mall, controls about 25 percent of the industry; Lorillard, which makes Newport menthols, controls about 15 percent. Together, one analyst sais, the two create a duopoly.
After the merger, top competitor Altria would be the only significant rival to the merged company; Altria controls about half of the market, according to reports.
But some experts say the merger is crucial to the companies as they face falling demand.
Full content: Newser
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