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Philip Morris in merger talks with Altria; e-cigs at stake
Source: Reuters
BUSINESS NEWS AUGUST 27, 2019 / 9:41 AM / UPDATED 24 MINUTES AGO
Philip Morris in merger talks with Altria; e-cigs at stake
Uday Sampath Kumar
3 MIN READ
(Reuters) - Philip Morris International Inc (PM.N) and Altria Group Inc (MO.N) are discussing an all-stock merger, potentially reuniting two of the world’s largest tobacco companies in a bid to dominate the fast-growing electronic-cigarette market.
Shares of Altria, which was spun out of Philip Morris more than a decade ago, rose more than 6% but later erased gains to trade 3.3% lower after CNBC reported the deal had no premium. Philip Morris shares fell 6.8% as some analysts questioned the rationale for the deal, which would reunite the two owners of the Marlboro cigarette brand.
A merger of the two would create a company with a market value of more than $200 billion, representing the fourth-largest deal of all time, according to Refinitiv data.
Analysts and investors have long speculated the companies would merge, given mounting pressure from declining cigarette sales and the need to invest in other sources of revenue. Philip Morris, which operates outside the United States, has developed an e-cigarette device called iQOS. Altria, which operates in the United States, owns a 35 percent stake in vaping company Juul Labs Inc.
-snip-
Philip Morris in merger talks with Altria; e-cigs at stake
Uday Sampath Kumar
3 MIN READ
(Reuters) - Philip Morris International Inc (PM.N) and Altria Group Inc (MO.N) are discussing an all-stock merger, potentially reuniting two of the world’s largest tobacco companies in a bid to dominate the fast-growing electronic-cigarette market.
Shares of Altria, which was spun out of Philip Morris more than a decade ago, rose more than 6% but later erased gains to trade 3.3% lower after CNBC reported the deal had no premium. Philip Morris shares fell 6.8% as some analysts questioned the rationale for the deal, which would reunite the two owners of the Marlboro cigarette brand.
A merger of the two would create a company with a market value of more than $200 billion, representing the fourth-largest deal of all time, according to Refinitiv data.
Analysts and investors have long speculated the companies would merge, given mounting pressure from declining cigarette sales and the need to invest in other sources of revenue. Philip Morris, which operates outside the United States, has developed an e-cigarette device called iQOS. Altria, which operates in the United States, owns a 35 percent stake in vaping company Juul Labs Inc.
-snip-
Read more: https://www.reuters.com/article/us-philip-morris-m-a-altria/philip-morris-in-merger-talks-with-altria-e-cigs-at-stake-idUSKCN1VH1IN
2 replies
= new reply since forum marked as read
= new reply since forum marked as read
From what I've read (and, no, not going to chase down stories via Google this time since accounts are too numerous and my life, including cigarette smoking for much of it, is clearly going to be too short), the dangers of vaping seem to match what they try to avoid via smoking?
Flame away. ...and thank you for the light of one of my last cigarettes.
</irony> 
