Tobacco Giant Plans Spinoff of Overseas Arm

Altria, the world's largest tobacco company, wants to break its Philip Morris International unit off from its US counterpart, Bloomberg reports, to pursue greater overseas growth while insulating it from health-related US lawsuits. "Tobacco is growing overseas, while in the US it's in decline, making a reasonable argument for separating the two entities,'' says an analyst.

The move, which US regulators must approve, is expected to be final in January, and it could save the company $250 million. Altria has struggled in the face of falling US smoking rates, cheaper competitors, and the burden of a $246 billion settlement with states. Philip Morris USA will concentrate on smokeless tobacco products, such as Marlboro snuff. (More Altria stories.)