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Philip Morris International is a huge player in the cigarette game. Last year, the company sold a whopping 831 billion cigarettes in more than 160 countries...

America’s biggest tobacco company, Altria Group Inc., announced its plan today to spin off its Philip Morris International unit. After the completed spinoff, Altria will be left with a much smaller domestic business, but it will still rank as the biggest in the country.

A big reason for the spinoff is that it will allow the overseas manufacturer to operate in an environment free from legal and regulatory restrictions that the domestic Phillip Morris USA is forced to operated under.By spinning off this portion of the business, it is hoped that the overseas cigarette maker will be able to have greater success in growing its sales in emerging markets. While the plans seem pretty set in stone right now, there will not be any finalized approval and terms to the spin off until the company’s next board meeting, scheduled for January 30.

Philip Morris International is a huge player in the cigarette game. Last year, the company sold a whopping 831 billion cigarettes in more than 160 countries. In terms of cigarette volume, that makes Philip Morris International the largest non government tobacco company in the world. Its global market share is 15.6% and there is no reason to think that this market share will not continue to expand, especially once it is clear of American laws.

One analyst, David Adelman from Morgan Stanley, told his clients that the spin off was a good strategy. He told investors today that the independently operated company will have a great competitive advantage stemming from its ability to aggressively undergo cost reductions.Wall Street has pushed shares of Altria up 0.7% today to $69.55 up $0.48.