The companies also said they would focus on jointly launching a heated tobacco product called IQOS.
"After much deliberation, the companies have agreed to focus on launching IQOS in the U.S. as part of their mutual interest to achieve a smoke-free future," Andre Calantzopoulos, CEO of PMI said. Shares of Philip Morris jumped 5.5% in premarket trading Wednesday after the news. PMI has a market value of $111.3 billion. Shares of Altria rose 1%, bringing it to a market value of $76.1 billion.Altria spun PMI off in 2008, and the deal would have reunited the two companies. Altria has remained a mainly U.S.-focused company through its Marlboro cigarettes sales, while PMI has focused on selling cigarettes overseas.
Altria also recently made investments in e-cigarette companies Juul and cannabis company Cronos, indicating plans to diversify beyond tobacco products.