Tobacco majors Lorillard and Reynolds American near merger - CNBC

July 3 (Reuters) - Tobacco majors Lorillard Inc (NYSE: LO - news) and Reynolds American Inc (NYSE: RAI - news) are likely to merge as early as end of July, CNBC reported, citing sources.

Reuters, in May, exclusively reported that Reynolds American was in active discussions to buy Lorillard in a complicated, three-way transaction that could see British American Tobacco (LSE: BATS.L - news) PLC take a major role to back a potential merger.

Lorillard share rose as much as 6.2 percent, while those of Reynolds American were up nearly 3 percent.

Imperial Tobacco Group Plc was evaluating a deal for assets likely to be divested from Reynolds American and Lorillard if the two U.S. tobacco companies proceed with a proposed combination, Reuters reported last month.

Lorillard had a market capitalisation of $22.17 billion as of Wedesday's close, while Reynolds' market value was $32.25 billion. (Reporting by Shailaja Sharma in Bangalore; Editing by Saumyadeb Chakrabarty)