(Reuters) - Cigarette maker Altria Group Inc has agreed to buy Skoal and Copenhagen smokeless tobacco maker UST Inc for about $10.3 billion in cash, the Wall Street Journal said, citing people familiar with the matter.
Altria will pay $70 per share, the Journal said.
The proposal offers a 4 percent premium over UST's closing price of $67.55 on Friday, when the New York Times had said Altria could pay more than $10 billion for UST.
UST, which also owns the Ste. Michelle Wine Estates, has long been seen as a likely acquisition target for Altria as the largest U.S. cigarette maker looks to expand into other tobacco markets as the U.S. cigarette market continues to decline.
Altria, whose Philip Morris USA unit makes Marlboro cigarettes, has already tried to expand by test-marketing smokeless tobacco products under the Marlboro name.
UST is the industry leader, with almost 58 percent of the U.S. smokeless tobacco market in the 26 weeks ended June 14, according to the company's latest earnings report.
But its main business, the premium segment, has been pressured by soaring gasoline prices and the weak U.S. economy.
Neither Altria nor UST could be immediately reached for comment.
