Swedish Match plans to spin off and list cigar business

STOCKHOLM, Sept 15 (Reuters) - Tobacco and nicotine products maker Swedish Match plans to spin off its U.S. cigar business to shareholders and list it on the stock market, the company said.

A spin-off would mean that Swedish Match, which sold its cigarette business in 1999, exits the combustible tobacco products segments.

“Swedish Match has initiated preparations for a separation and a subsequent listing on a major U.S. securities exchange,” it said in a statement on Tuesday.

“The separation is expected to be completed during the second half of 2022, at the earliest.”

The company generates the bulk of profits from its Swedish-style snuff “snus”, and its tobacco-free nicotine pouch business is growing rapidly. (Reporting by Anna Ringstrom; Editing by Clarence Fernandez)