Tobacco shares power FTSE higher as merger talks heat up

clock

Tobacco stocks pushed the FTSE 100 higher at open today after details of a mega-merger between two of the largest US tobacco companies reached final stages.

According to reports, Reynolds American and Lorillard, along with key Reynolds stakeholder British American Tobacco, have agreed the price at which the merger will go through.

The are now finalising details - such as which branding and production facilities to dispose of - in order to meet antitrust standards.

Talk that details of the merger could be announced anyday sent shares surging just after 8am.

British American Tobacco was up 1.7%, while peer Imperial Tobacco climbed 3.3%.

The shares - favoured by a number of well-known income fund managers, among them Neil Woodford - pushed the wider FTSE 100 index up 0.3% at 6,690 points.

Negotiations between the three parties began earlier this year, but have increased in activity in recent days. However, no deal has yet been confirmed by the

Reynolds brands include Camel and Pall Mall, while Lorillard brands include Maverick and Old Gold. Lorillard also has a profitable business selling the Newport brand of menthol cigarettes.

More on Investment

Stories of the Week: Janus Henderson's AoV; Home REIT and the asset management 'battleground'

Stories of the Week: Janus Henderson's AoV; Home REIT and the asset management 'battleground'

The biggest stories from the world of investment and asset management this week

Investment Week
clock 01 May 2026 • 1 min read
Partner Insight: Rising populism: what shifting politics could mean for markets and portfolios

Partner Insight: Rising populism: what shifting politics could mean for markets and portfolios

Populist policies can support short term growth but raise long term risks. We examine how rising populism is influencing markets, policy direction and asset prices—and how investors might respond.

Capital Group
clock 27 April 2026 • 3 min read
Stories of the Week: Hilary Lopez returns to BlackRock, FTSE 100 CEO pay rises, and Women in Investment Awards 2026 nominees announced

Stories of the Week: Hilary Lopez returns to BlackRock, FTSE 100 CEO pay rises, and Women in Investment Awards 2026 nominees announced

The biggest stories from the world of investment and asset management this week

Investment Week
clock 24 April 2026 • 1 min read
Trustpilot