The Deal
Tuesday, November 24, 
4:12 pm

Altria takes a taste of smokeless tobacco for $10.3B

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Altria Group Inc. is trying to keep pace with the tobacco market's everchanging tastes. The New York-based company is reportedly poised to announce its first deal since it split off its international arm with a $10.3 billion agreement to buy smokeless tobacco group UST Inc.

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The Wall Street Journal reported that the companies will confirm later Monday that Altria will offer about $70 per UST share, a 3.6% premium to UST's Friday close and a near-30% premium to the price before the takeover speculation.

The market for smokeless tobacco is growing as smokers change their habits in the face of widespread smoking bans in enclosed public places. UST of Stamford, Conn., with sales last year of $1.95 billion, is best known for chewing tobacco brands Skoal and Copenhagen. - Laura Board

See TheDeal.com: Altria 'to pay $10.3B for UST' (see full story - subscription required)
Dealscape: Who wins in UST-Altria?





Comments

From: anders,

There are so many articles published on smokeless tobacco products that contain very misleading information for consumers. Many articles claim that smokeless tobacco in particular Swedish snus are less harmful than cigarette. There are no clear evideces that snus/smokeless tobacco can cause cancer. Now it is up to consumer to choose whether the will quit totally tobacco products or keep enjoying nicotine consuming smokeless tobacco snus. Smokeless tobacco can save many peopls lives. No effects of passive smoking and no risk of cancer....


Find more about at http://www.swedsnus.com


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