R.J. Reynolds Tobacco Co. and rival Brown & Williamson Tobacco Corp. are uniting their U.S. operations in a $2.6 billion deal aimed at weathering an onslaught of discounted brands and lawsuits. The deal announced late Monday vastly expands the reach of two tobacco companies that together produce about one of every three cigarettes smoked in the United States. The merged operation will be called Reynolds American Inc., with about $10 billion in annual sales. R.J. Reynolds makes Camel, Winston , Salem and Doral, while Brown & Williamson’s top brands include Kool, Lucky Strike and Capri. The combined company will still trail industry giant Philip Morris USA, whose market-leading Marlboro and other brands command about half the U.S. cigarette market.( AP/Charlotte Observer )(10-28-2003)
