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Altria to Purchase Snuff Maker UST for $10.3 Billion (Update1)  

Altria Group Inc., the maker of Marlboro cigarettes, agreed to buy UST Inc. for $10.3 billion to become the largest U.S. producer of smokeless tobacco.

The purchase, valued at $69.50 a share, won't affect Altria's full-year profit forecast, the Richmond, Virginia- based company said today in a statement. UST gained 25 percent in New York trading on Sept. 5 following reports that Altria would bid for the maker of Skoal snuff.

Altria will pass Reynolds American Inc. as the largest U.S. smokeless tobacco producer, a $3.7 billion market that's expanding about 7 percent a year. As more Americans quit smoking, Altria started testing Marlboro smokeless tobacco and said it was also considering an acquisition of a snuff maker. ``Altria is buying two tremendous brands in Skoal and Copenhagen

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