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UPDATE3-Philip Morris buys Nabisco, RJ Reynolds buys its parent 

Philip Morris Cos Inc. completed its purchase of cookie and cracker maker Nabisco Holdings Corp. on Monday, while R.J. Reynolds Tobacco Holdings Inc. bought Nabisco's former parent, giving it $1.5 billion in cash, the companies said.

Philip Morris' Kraft Foods Inc. unit, which is already the world's second-largest food company after Swiss conglomerate Nestle, can now stock its cupboard with the Nabisco Holdings food line of Oreo cookies, Ritz crackers, Lifesavers candies and Grey Poupon mustard.

Philip Morris, also the world's largest cigarette company, paid about $14.58 billion plus the assumption of about $4 billion in debt. The combined Kraft-Nabisco creates a packaged food giant with annual revenues of $35 billion.

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