Maker Of Camel Cigarettes Purchases Nicotine Gum Manufacturer As A Hedge

cigarette

You have to give it to Reynolds American: the company knows how to hedge.

—————–

AP: Cigarette maker Reynolds American says it is buying a Swedish company whose nicotine gum, pouches and spray help people stop smoking.

The maker of Camel cigarettes and Grizzly smokeless tobacco says Niconovum AB’s products could meet consumer demand and public health objectives for reducing the harm caused by tobacco use.

Niconovum products are sold outside the U.S. The deal, which is not final, would be worth about $44 million.

Reynolds, which is the second-largest U.S. tobacco company and based in Winston-Salem, N.C., is, like its competitors, looking to cigarette alternatives for growth as tax increases, health concerns, smoking bans and social stigma cut into demand for cigarettes.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.