Details of Altria Group's acquisition of UST

Altria Group Inc., owner of Philip Morris USA, plans to buy UST Inc., the maker of Skoal and Copenhagen, for $10.4 billion to boost its ability to sell smokeless tobacco products.

WHY: Americans are buying 3 percent to 4 percent fewer cigarettes, by volume, per year. Sales of smokeless tobacco products are rising by 5 percent to 6 percent.

OTHER FACTORS: Richmond, Va.-based Altria spun off Philip Morris International in March, and is seeking new ways to increase revenue. Its own Marlboro brand smokeless products have been disappointing so far, analysts say.

CONSOLIDATION: The global tobacco industry has been consolidating. Imperial Tobacco Group PLC bought Franco-Spanish company Altadis in January; former Altria subsidiary Philip Morris International is buying Canadian cigarette company Rothmans Inc.; and Reynolds American Inc. bought smokeless company Conwood Co. in 2006.

WHAT NEXT: Analysts believe other potential acquisition targets include Lorillard, which was spun off from the Loews Corp. in June, as well as tobacco leaf producer Universal Corp. and Vector Group Ltd.

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