US tobacco giant Altria, maker of major brands such as Marlboro and Chesterfield, announced Thursday that it will buy a 35 percent stake in popular e-cigarette maker Juul for $12.8 billion. The deal comes as US regulators increase scrutiny of the marketing to young consumers of e-cigarettes, a fast-growing product that tobacco companies hope will compensate for declines in conventional cigarette sales.
The investment more than doubles the value of Juul to $38 billion. "We are taking significant action to prepare for a future where adult smokers overwhelmingly choose non-combustible products over cigarettes," Altria CEO Howard Willard said in a statement. "Through Juul, we are making the biggest investment in our history toward that goal." He said the products can help "achieve tobacco harm reduction."
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