Marlboro company buys snuff firm

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Altria, which owns the Marlboro cigarette brand has bought the US's largest smokeless tobacco maker, UST.

The $11.7bn(£6.6bn) deal sees the firm diversify further into tobacco products that are not affected by smoking bans.

UST, which makes Skoal and Copenhagen snuff brands, is Altria's first acquisition after selling off its Philip Morris International subsidiary.

Altria are offering $69.50 (£39.50) in cash per share, representing a 29% premium to UST shareholders.

The integration of the two companies is expected to generate cost savings in the region of $250m (£142m).

Altria will also get the UST-owned wine producer, Ste Michelle Wine Estates as part of the deal.

Chairman and chief executive officer of Altria, Michael Szymanczyk said, "We are excited about this strategic and financially attractive acquisition as it will enhance our ability to deliver superior shareholder return that is expected to exceed our 12% goal."

The takeover is subject to shareholder and regulatory approval.