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Altria To Buy Burger Sohne's Global Businesses For $372 Mln; Bets On Nicotine Pouches

Altria Group Inc. (MO), the manufacturer of Malboro cigarettes, said that it agreed to buy 80 percent ownership interest in Switzerland tobacco company Burger Söhne Holding's global business for $372 million in cash. The acquisition marks Altria's entry into the fast-developing oral tobacco-derived nicotine or TDN category.

Now Altria will commercialize Burger Group's On! nicotine pouch worldwide.

Altria expects to complete the transaction in the second half of 2019.

Altria formed a new subsidiary, Helix Innovations, that upon closing, will be the parent company of the Burger Group subsidiaries currently manufacturing and selling on!.

As per the deal, Altria will distribute on! across the U.S. in advance of the transaction closing.

It was in March that Altria took stake in the Canada-based cannabinoid company Cronos Group. Last December it had also made investments in E-Cigarette maker JUUL Labs.

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