Philip Morris International And Altria Call Off $200 Billion Merger

Share to linkedinPlans to reunite Big Tobacco in a merger between Altria and Philip Morris International were canceled on Wednesday, with the industry facing its greatest regulatory threat in decades as the Food and Drug Administration mulls banning flavored e-cigarettes.

The $200 billion merger had been thrown into uncertainty after the recent FDA announcement, which raised the prospect of further federal and state regulation of vaping. Both companies had invested in e-cigarettes to try and offset declining sales of traditional cigarettes: Altria paid $12.8 billion for a 35% stake in Juul last year, while PMI invested more than $6 billion in a heated tobacco device called Iqos.

Analysts had predicted that a U.S. flavored e-cigarette ban would mean that the merger had become more important than ever for Altria, who needed PMI’s global access to “ distribute Juul to the developed markets, all of which have varying rules and regulations,” CFRA Research analyst Garret Nelson

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Philip Morris and Altria end merger talksThe companies also said they would focus on jointly launching an only-heated tobacco product called IQOS.
Fonte: CNBC - 🏆 12. / 72 Leggi di più »

Philip Morris, Altria call off mergerPhilip Morris International Inc has abandoned merger talks with Altria Group Inc... Could it be the impending storm of law suits and regulations No need to merge now that the vaping ban will be shoveling piles of money BACK to Philip Morris. Vaping bans should be awarded the cigarette salesman of the year award.
Fonte: Reuters - 🏆 2. / 97 Leggi di più »

Philip Morris, Altria call off mergerPhilip Morris International Inc has abandoned merger talks with Altria Group Inc... Could it be the impending storm of law suits and regulations No need to merge now that the vaping ban will be shoveling piles of money BACK to Philip Morris. Vaping bans should be awarded the cigarette salesman of the year award.
Fonte: Reuters - 🏆 2. / 97 Leggi di più »