A PMI And Altria Merger Would Threaten The Vaping Industry

Source from:  VapingPost 09/02/2019

Did you hear? Philip Morris International (PMI) and Altria Group have confirmed rumors that the two tobacco giants are discussing the possibility of re-merging.

In a statement released by PMI on August 28, a spokesperson announced that the discussions are merely passive at this point in time.

“There can be no assurance that any agreement or transaction will result from　these discussions,” reads the statement “Additionally, there can be no assurance that if an agreement is reached, that a transaction will be completed. Any transaction would be subject to the approval of the two companies’ boards and shareholders, and regulators, as well as other conditions.”

History
With this confirmation of the talks, concerns are certainly justifiable. If we consider the basic economics of a potential Altria-PMI re-merger, the companies will form the largest tobacco company on the planet. Both firms are roughly estimated at $100 billion in value apiece, adding over a $200 billion merger.

Previously, PMI was an internationally operating subsidiary and asset of Altria Group. In 2008, however, PMI spun off into its own firm operating in 180 countries outside of the United States.

Altria, as a result, maintains the American markets through Philip Morris USA, the U.S. Smokeless Tobacco Co., and premium cigarette and cigar producers John Middleton and Nat Sherman. PMI has subsidiaries such as Sampoerna and Rothmans, Benson & Hedges operating emerging markets.  Enditem