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Imperial in talks to buy assets from Reynolds and Lorillard

Reuters - UK Focus

LONDON, July 11 (Reuters) - Imperial Tobacco (LSE: IMT.L - news) , the world's fourth-largest tobacco group, said on Friday it was in talks with Reynolds and Lorillard (NYSE: LO - news) to acquire certain assets and brands that could be sold by the two groups.

"Imperial would proceed with an acquisition only if its terms met strict transaction criteria," it said.

Reynolds and Lorillard are in advanced talks about a deal that would merge the No.2 and No.3 U.S. cigarette makers, Reuters has previously reported.

(Reporting by Kate Holton. Editing by Jane Merriman)