Reynolds Said Near Deal to Buy Lorillard With BAT Blessing

Reynolds American Inc., the producer of Camel cigarettes, is closing in on a purchase of Lorillard Inc. and may announce a deal as soon as next week with the blessing of British American Tobacco Plc, people with knowledge of the matter said.

BAT, based in London, owns 42 percent of Reynolds and would have to approve of any merger. The transaction -- which would follow months of on-again, off-again talks -- is complicated by its size and the involvement of several companies, and there is no guarantee a deal will get done, said the people, who asked not to be identified because the talks are private. Lorillard, based in Greensboro, North Carolina, has a market value of almost $23 billion.