Scandinavian Tobacco Group to Sell Break, Moro Brands to Japan Tobacco Inc

12:30 AM EDT, 07/23/2026 (MT Newswires) -- Scandinavian Tobacco Group A/S (STG.CO) said Wednesday it agreed to sell its Break and Moro fine-cut tobacco brands to Japan Tobacco Inc at a valuation of 176 million euros. The deal includes a contract manufacturing clause of up to three years. Completion is expected before the end of 2026, subject to regulatory approvals, among other customary closing conditions. The Copenhagen-listed cigar and tobacco company said the transaction is earnings dilutive but will not affect its 2026 guidance. Chief Executive Officer Niels Frederiksen said proceeds will be used to reduce the company's debt and leverage ratio.