Swedish Match Signs Deal To Move Cigars To New JV

Source from:  Dow Jones 04/27/2010

Swedish Match Monday said it has signed an agreement with Scandinavian Tobacco Group to jointly form a new global company focusing on cigars. The new Danish-Swedish joint venture will sell around 2.5 billion cigars a year and have a revenue of 690 million euros, based on 2009 full-year results for the two companies. Swedish Match will contribute all of its cigar business, with the exception of US mass market cigars, as well as its remaining pipe tobacco and accessories businesses. "This is a good move," says Henrik Frojd, an analyst at Swedbank who has a neutral rating … Enditem