Lorillard and Reynolds America confirmed merger talks and if successful the combined company will have $56 billion of worth. If consummated, the merger will combine the second- and third-largest tobacco makers.
Lorillard had net sales of $6.7 billion in 2013 and Reynolds reported net sale of $8.3 billion in the year.
British American Tobacco is the largest shareholder with a stake of 42% in Reynolds America and involved in the merger talks. BAT is seeking to retain its 42% stake in the merged company.