It’s official: Philip Morris parent co, Altria has agred to buy chewing-tobacco manufacturer, UST for $10.3 billion in cash, or $70 per share.
WSJ: Altria Group Inc. has agreed to acquire UST Inc. for about $10.3 billion in cash, people familiar with the matter said, a deal that would put two of the biggest brands in tobacco — Marlboro and Skoal — under one roof.
Under terms expected to be announced on Monday, Altria will pay about $70 per share, the people said.
Altria is the parent company of Philip Morris USA, the largest U.S. cigarette maker, which produces the popular Marlboro-brand cigarette. It commands a roughly 50% share of the U.S. cigarette market. UST, based in Stamford, Conn., is known for its premium chewing-tobacco brands, Copenhagen and Skoal. It had revenue of $1.95 billion last year.
The deal would give Altria a strong foothold in smokeless tobacco, a growing area of the market where it has had difficulty making inroads against long-established brands.
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