TOKYO — Japan Tobacco Inc. (JTI) is in talks to buy cigarette assets from Reynolds American Inc. (RAI) as the company seeks to expand outside of its shrinking home market, people familiar with the talks told Bloomberg News.

The Tokyo-based firm may acquire assets worth about $5 billion, including some of Santa Fe Natural Tobacco Co. Inc.’s Natural American Spirit tobacco brands, said the people, who asked not to be identified because the information is private. While discussions are advanced, talks could still fall apart and the size of the deal and the makeup of the assets could still change, they said.

A spokesperson for Reynolds said the company doesn’t comment on rumor or speculation.

Winston-Salem, N.C.-based Reynolds American Inc. is the parent company of R.J. Reynolds Tobacco Co.; Santa Fe Natural Tobacco Co. Inc.; American Snuff Co. LLC; Niconovum USA Inc.; Niconovum AB; and R.J. Reynolds Vapor Co.

R.J. Reynolds Tobacco’s brands include Newport, Camel and Pall Mall cigarettes; American Snuff’s brands include Grizzly and Kodiak smokeless tobacco products; Santa Fe Natural Tobacco manufactures and markets Natural American Spirit 100% additive-free natural tobacco products, including styles made with organic tobacco; Niconovum USA and Niconovum AB market nicotine replacement therapy products in the United States and Sweden, respectively, under the Zonnic brand name; and R.J. Reynolds Vapor manufactures and markets Vuse electronic cigarettes.

Japan Tobacco Inc. is a leading international tobacco company. Its products are sold in more than 120 countries, and its brands include Winston, Camel, Mevius and LD.

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