Shareholders approved the Reynolds American Inc USD 27.4 billion (EUR 24.1 billion) deal to purchase Lorillard and spin assets off to Imperial Tobacco, the companies said.

RAI shareholders meeting in North Carolina approved issuance of additional stock to pay Lorillard shareholders and to allow British American Tobacco, the fourth cigarette maker in the deal, to purchase enough RAI stock to maintain its 42 per cent stake in Reynolds. The deal includes about USD 2.4 billion in net debt assumption.
“Although no assurance can be given as to if and when the transaction will be completed because it remains subject to regulatory approval and other customary closing conditions, the transaction is expected to close in the first half of 2015”, RAI said.
Lorillard shareholders voted overwhelmingly to accept the takeover, which includes per share remuneration of USD 50.50 in cash and 0.2909 RAI stock. Imperial investors meeting in Bristol, UK, approved a USD 7.1 billion commitment to buy Lorillard assets from RAI including Lorillard headquarters in Greensboro, NC, the US Winston, Maverick, Kool, Salem brands and Blu e-cigarettes.