Japan Tobacco (JT) is in advanced talks with Reynolds American (RAI) to acquire cigarette assets worth USD 5 billion (EUR 4.5 billion), the news agency Bloomberg reported, citing people with knowledge of the talks.
Those assets may include some of the American Spirit line manufactured by RAI subsidiary Santa Fe Natural Tobacco Company, according to the report. Natural American Spirit is sold in the US and internationally.
Commenting on the report in a note to investors, Wells Fargo Securities analyst Bonnie Herzog said Santa Fe is worth about USD 7.6 billion.
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