Philip Morris to buy South African unit of Swedish Match

NewYork-based Philip Morris International, the worldÔÇÖs largest publicly traded cigarette maker, has agreed to buy Swedish Match South Africa (SMSA) for R1.75 billion ($224 million), which will make it the biggest seller of pipe tobacco in the South African market. ┬á  SMSA has a strong presence in the OTP (other tobacco products) market in South Africa and is market leader for its pipe tobacco, which includes the well-known Boxer and Best Blend brands. The unitÔÇÖs sales were reported to total R687 million last year.┬á Philip Morris, whose brands include Marlboro, will acquire operations equivalent to roughly 31 per cent of tobacco consumption in South Africa when the deal goes through later this year.┬á Swedish Match has said the sale is in line with its ÔÇ£strategy to focus on smokefree tobacco, cigars and lights products.ÔÇØ  SMSA will continue to distribute lighters, matches and cigars for Swedish Match. *┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á *