Tobacco.org

Merger planned by tobacco dealers 

Standard Commercial, the biggest tobacco dealer based in North Carolina, announced Monday it would merge with a larger competitor, creating a company with expanded global reach as cigarette companies buy more tobacco from growers overseas.

Dimon, the world's No. 2 leaf tobacco dealer, plans to buy Wilson-based Standard Commercial, which is the world's third-biggest tobacco dealer, in a stock deal worth about $255 million, plus debt. The companies buy tobacco from growers, process the crop and sell it to tobacco product companies, such as Philip Morris, the maker of Marlboro and other cigarettes.

"Strategically, operationally and financially, this is the right transaction at the right time -- combining two companies that are the right fit," Brian J. Harker, Dimon's chief executive, said during a conference call Monday.

Jump to full article »