×

FTC weighing Reynolds-Lorillard settlement: Report

Packs of Camel cigarettes, manufactured by Reynolds American, are shown on a newsstand counter in London.
Simon Dawson | Bloomberg | Getty Images
Packs of Camel cigarettes, manufactured by Reynolds American, are shown on a newsstand counter in London.

The Federal Trade Commission is considering allowing a potential merger between Reynolds American and Lorillard, the Wall Street Journal reported, citing sources.

The two tobacco companies met with FTC commissioners this week, the report said.

Read More Reynolds plans to acquire rival Lorillard

The Journal cited sources saying that some within the agency have objected to the proposed deal, but others want to approve the merger "with a binding legal settlement that includes divestures."

Reynolds had offered to sell several brands, including Kool and Salem, to Imperial Tobacco Group for $7.1 billion.

The market cap as of Thursday afternoon for Reynolds is $37 billion, and Lorillard's is $24 billion, according to FactSet. The firms are the second- and third-largest cigarette companies in the U.S., the report said.

The firms announced their intention to merge in July.

Lorillard is the maker of Newport cigarettes, among other brands.

For more on the proposed merger, see the Wall Street Journal article.

Read MoreThe real winner in the Lorillard takeover: BAT