08:50 AM EST, 03/07/2025 (MT Newswires) -- Philip Morris International ( PM ) said Friday that its de-consolidated Canadian affiliate, Rothmans, Benson & Hedges, has had its plan of compromise and arrangement approved by a Canadian court.

The company said the plan resolves all tobacco-related claims and litigation in Canada against Rothmans, Benson & Hedges, and its affiliates, including Philip Morris International ( PM ).

The resolution, also approved for Imperial Tobacco Canada and JTI-Macdonald, involves a global settlement of 32.5 billion Canadian dollars ($22.7 billion), the company said.

Philip Morris International ( PM ) said the settlement will be funded through an upfront payment based on available cash and cash equivalents, plus annual payments based on the companies' net after-tax income.

Rothmans, Benson & Hedges will retain $CA750 million for its discretion and will be released from claims related to its combustible and smokeless tobacco products prior to the effective date of the plan, it added.