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Tuesday, September 29, 2015

Reynolds to sell some brand rights to Japan Tobacco for $5 bln, (NYSE: PM)

Japan Tobacco Inc said it would purchase Reynolds American Inc's Santa Fe Natural Tobacco units outside the United States for about $5 billion, giving it the rights to the Natural American Spirit brand.Santa Fe will continue to own the rights to the brand - marketed as additive-free and popular among younger smokers - in the United States. ( Japan Tobacco (JT), which already holds international rights to Reynolds' Winston and Camel, said Santa Fe's international units employ about 280 people, mainly in Europe and Japan.The deal will help JT in its pursuit to become the world's biggest cigarette maker, overtaking first and second-ranked Philip Morris International and British American Tobacco .

Philip Morris International Inc. is a holding company engaged in the manufacture and sale of cigarettes, other tobacco products and other nicotine-containing products in markets outside of the United States. Shares of PM fell by 0.84% or $-0.67/share to $78.91. In the past year, the shares have traded as low as $75.27 and as high as $90.25. On average, 3986770 shares of PM exchange hands on a given day and today's volume is recorded at 4332492.