FTC Approval For Transaction

RNS Number : 3187O

Imperial Tobacco Group PLC

27 May 2015

 



Imperial Tobacco subsidiary receives FTC approval for the transaction with Reynolds American Inc.

On 15 July 2014, Imperial Tobacco Group PLC (the "Company") announced that a subsidiary of the Company had entered into a purchase agreement with Reynolds American Inc. ("Reynolds") for the acquisition of certain US cigarette and e-cigarette brands and assets currently owned by Reynolds and Lorillard, Inc. ("Lorillard") (the "Transaction"), following the proposed acquisition of Lorillard by Reynolds (the "Acquisition").

The Company is pleased to announce that the US Federal Trade Commission ("FTC") has given its approval for the Acquisition, subject to a consent order requiring Reynolds to complete the Transaction.

The closing of the Transaction remains subject to certain other conditions described in the announcement of 15 July 2014 and the circular to shareholders dated 15 December 2014, including an order from the United States District Court for the District of Columbia in relation to the DOJ case in respect of the acquired US cigarette brands.

The Company continues to expect to complete the Transaction in spring 2015.

ENDS

For further information please contact:

Investor contact: Jo Brewin [phone]

Media contact: Simon Evans [phone]

Notes to Editors

Imperial Tobacco Group PLC is a multi-national tobacco company, with international strength in cigarettes and world leadership in fine cut tobacco, premium cigars, rolling papers and tubes. The Group has 44 manufacturing sites and around 32,000 employees and operates in over 160 markets.

The DOJ case was a case filed in 1999 by the US Department of Justice against major tobacco companies.  As the acquired US cigarette brands were owned by Reynolds and Lorillard at the time of the final judgment and remedial order in relation to the DOJ case, the closing of the Transaction is conditional upon formal court approval subjecting ITG Brands, the US affiliate of the Company which will acquire the US cigarette brands, to the obligations of the case.

In accordance with LR10.4.2R(2), the Company confirms that, save as disclosed in this announcement, there has been no significant change affecting any matter contained in the announcement dated 15 July 2014 and no other significant new matter has arisen which would have been required to be mentioned in that announcement if it had arisen at the time of its preparation.

Cautionary Statement

Certain statements in this announcement constitute or may constitute forward-looking statements. Any statement in this announcement that is not a statement of historical fact including, without limitation, those regarding the Company's future expectations, operations, financial performance, financial condition and business is or may be a forward-looking statement. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected or implied in any forward-looking statement. These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described in this announcement. As a result, you are cautioned not to place any reliance on such forward-looking statements. The forward-looking statements reflect knowledge and information available at the date of this announcement and the Company undertakes no obligation to update its view of such risks and uncertainties or to update the forward-looking statements contained herein. Nothing in this announcement should be construed as a profit forecast or profit estimate and no statement in this announcement should be interpreted to mean that the future earnings per share of the Company for current or future financial years will necessarily match or exceed the historical or published earnings per share of the Company. This announcement has been prepared for, and only for, the members of the Company, as a body, and no other persons. The Company, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this announcement is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.

 

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