The recently announced acquisition of Lorillard (LO +0.00%) by Reynolds American (RAI +0.00%) is a major game changer in the U.S tobacco market, and it represents a serious competitive threat for market leader Altria (MO 0.72%). Although a stronger competitive position and scale advantages are big positives for investors in Reynolds American, it's important to consider that the tobacco industry is a particularly risky area for investors.
The following slideshow offers some ideas for investors willing to look at the recently announced merger and its investment implications.
