Reynolds American, Lorillard in advanced talks to combine

Reynolds American Inc. and Lorillard Inc. are in advanced talks to combine in a deal that would dramatically reshape the U.S. tobacco landscape, creating a powerful No. 2 to industry leader Altria Group Inc., according to a person familiar with the matter.

A potential takeover would combine leading Reynolds cigarette brands such as Camel and Pall Mall with Lorillard's Newport, the top-selling menthol cigarette, according to the Wall Street Journal.

The potential deal would also put Reynolds in a better position in the world of electronic cigarettes. Lorillard's blu e-cigarette has nearly a 50 percent market share in U.S. gasoline and convenience stores.

Read more from the Wall Street Journal.