Reynolds buying Lorillard... But Not Blu?

[zoiDman]

Here is a Very Interesting article ...

Reynolds American to Buy Lorillard for $25 Billion - WSJ

In a telephone interview, Reynolds CEO Susan Cameron said the Blu divestment was fueled in part by the need to shed assets for antitrust reasons. But she said Reynolds also believes its Vuse e-cigarette technology is superior to that of Blu, noting Vuse captured a retail share of more than 70% last year when it was launched in the test market of Colorado

 

[jdrewry]

Doesn't matter--I wouldn't buy anything from BT, e-cig/juice or not.

 

[wrath186]

Hmm, interesting.

 

[BuzzKill]

QUOTE " It will then sell several brands — notably the popular Blu line of e-cigarettes and the Kool, Salem and Winston brands — and a former Lorillard manufacturing plant in North Carolina to Imperial for $7.1 billion."

looks like they will sell them off actually

 

[zoiDman]

Doesn't matter--I wouldn't buy anything from BT, e-cig/juice or not.

Many Share your Opinion. And will continue do why Still in a Free Market.

But the Reason I posted it Isn't about Today. It is More about the Rearranging of the Chess Pieces on the Board in the Coming Regulated Market.

 

[zoiDman]

QUOTE " It will then sell several brands — notably the popular Blu line of e-cigarettes and the Kool, Salem and Winston brands — and a former Lorillard manufacturing plant in North Carolina to Imperial for $7.1 billion."

looks like they will sell them off actually

As I Understand it. Reynolds wants to buy Lorillard but Divest Blu at the time of the Purchase to Imperial Tobacco.

Imperial Tobacco - Wikipedia, the free encyclopedia

So Reynolds would end up with Lorrilard sans Blu.

 

[Tinkiegrrl]

I think Vuse did well because Blu didn't work for a lot of people. If they released a third cigalike product in the same area, it would outsell Vuse. They're all the same. Lousy taste, poor vapor production, constant charging of batteries. I know some friends of mine who pretty much went through every cigalike product in the area, only to get the same results. They won't try a larger set up unless I hand them one for free (I've done this).

 

[WharfRat1976]

OMG I am sooooooo ooo keeping all my eyes on dis...

 

[bluecat]

It isn't unheard of for a company to spinoff a division or such. Reynolds already has VUSE. Probably decided it was enough and to grab 7 bill for Blu.

 

[Drauder]

Together with Lorillard, Reynolds had to get rid of some brands to avoid anti trust. They sold the brands to Imperial. Imperial wouldn't do the deal without Blu. So They sold them Blu to make the deal happen. Reynolds is counting on Vuse. That's the story anyway.

 

[bluecat]

Together with Lorillard, Reynolds had to get rid of some brands to avoid anti trust. They sold the brands to Imperial. Imperial wouldn't do the deal without Blu. So They sold them Blu to make the deal happen. Reynolds is counting on Vuse. That's the story anyway.

Ahh basically the same thing with Comcast buying TWC. Comcast had to sell a portion off to Charter to avoid antitrust.

Don't ya love it... customer always gets screwed even while they are supposed to help us.

 

[zoiDman]

Together with Lorillard, Reynolds had to get rid of some brands to avoid anti trust. They sold the brands to Imperial. Imperial wouldn't do the deal without Blu. So They sold them Blu to make the deal happen. Reynolds is counting on Vuse. That's the story anyway.

This is Basically the Jist of what I understand.

There has be Talk of Reynolds wanting to buy Lorillard Many Times in the Past. Just Never Happened.

Now it looks like it Might Happen, so I say OK, Blu being in the Mix made it Happen. But Lorillard having Blu Isn't what made it Happen. In Fact, Reynolds Doesn't Want or Feels they Can't Take Blu in the Deal.

Very Interesting.

 

[The Ministry]

Moved to Media and General News

Closed as already being discussed here