Merger of UST and Altria to close by Jan. 7

By Lisa Kerner

Charlotte, N.C., Oct. 24 - UST Inc. said it expects its acquisition of Altria Group, Inc. to close during the first full week of January and no later than Jan. 7.

In September, Altria agreed to acquire all outstanding shares of UST for $69.50 each in a transaction valued at about $11.7 billion, including the assumption of about $1.3 billion of debt.

Altria has fully committed financing to complete the transaction, and the Federal Trade Commission granted early termination of the Hart-Scott-Rodino waiting period, a UST news release said.

It was previously reported that Altria and UST recently amended their merger agreement to extend the closing date and increase the reverse termination fee payable by Altria to $300 million from $200 million under certain circumstances.

UST is a holding company for U.S. Smokeless Tobacco Co., a producer and marketer of moist smokeless tobacco products including Copenhagen, Skoal, Red Seal and Husky. The company is located in Stamford, Conn.

Altria, located in Richmond, Va., manufactures and sells cigarettes and other tobacco products. It is the parent company of Philip Morris USA.

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