Reynolds American, the second-largest US tobacco company, is in talks to buy a Swedish maker of nicotine gum and mouth sprays to broaden its offerings beyond cigarettes, a person with knowledge of the discussions said.

According to a Bloomberg report, Reynolds, which makes Camel cigarettes and Grizzly snuff, wants to acquire closely held Niconovum as a way to reach consumers trying to stop smoking, said the person, who declined to be identified because the negotiations are private. Buying Niconovum would advance Reynolds chairman and chief executive officer Susan Ivey’s push into nicotine products less harmful than cigarettes. The company is testing dissolvable tobacco tablets in the US after introducing Swedish-style Camel snus earlier this year, Ivey told analysts on 22 October. It bought snuff maker Conwood in 2006.
"It is one indication of the changing nature of the nicotine business," David Sweanor, an adjunct professor of law at the University of Ottawa, said by telephone today. He said he supports weaning nicotine users off cigarettes because of the harm associated with lighting up. Sweanor said he was told about the talks between Reynolds and Niconovum by people briefed on the transaction. The Wall Street Journal reported the talks earlier today, citing Sweanor. Sweanor said the value of the deal may be EUR 30 million (USD 49 million), the Journal reported.
Niconovum, based in Helsingborg, makes Zonnic gum and mouth spray to reduce "cigarette craving", according to its web site. It was formed in 2000 by Karl Olov Fagerstrom, who previously worked on developing the Nicorette brand. RJ Reynolds Tobacco Company, Reynolds’ cigarette division, generated USD 1.87 billion, or 87 per cent of the company’s revenue, in the third quarter. (pi)