NEW YORK -- Philip Morris says it has agreed to buy Swedish Match South Africa for 1.75 billion South African rand, or roughly $222 million.
The company, an affiliate of Swedish Match AB, reported sales of 687 million South African rand last year. Its brands include Boxer, Best Blend and Taxi.
Philip Morris International Inc. estimates that Swedish Match South Africa's pipe tobacco and snuff products represent about 31 percent of total tobacco consumption in South Africa.
Philip Morris expects to complete the acquisition by the end of the fourth quarter, following approval by South African regulators. In a statement, the New York-based tobacco company predicts the deal will be "immediately marginally accretive" to earnings per share.
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