E-Cigarette Maker Juul Eyes Strategic Alternatives With Philip Morris, Japan Tobacco, Altria

Lately, e-cigarette maker Juul Labs Inc had separate discussions with Philip Morris International Inc PM, Japan Tobacco JAPAF JAPAY, and Altria Group, Inc MO over a potential sale, investment or partnership.
Altria, which owns a 35% stake in Juul, valued the vaping company at $1 billion in October, the Wall Street Journal reports.
Juul, which represents 27% of e-cigarettes sold in U.S. stores tracked by Nielsen, was on the verge of bankruptcy in 2022 amid a regulatory dispute over its existence in the U.S. market.
The U.S. pursued a federal ban on menthol cigarettes. California has already banned menthols.
The U.S. proceeded to eliminate nearly all nicotine from cigarettes.
As federal regulators revamped the industry, big tobacco companies competed to grab pieces of the U.S. e-cigarette market.
The FDA in June ordered Juul to halt its U.S. sales which neared the settlement of lawsuits accusing it of marketing its products to children and teens.
Juul reached talks with Altria last fall on a potential deal to sell Juul’s international business or license its U.S. intellectual property. Still, those talks fell apart in September as Juul prepared for a possible bankruptcy.
Last September, Altria shared plans to end the agreement with Juul, which helped the latter prepare for its sale.
In January, Juul CEO K.C. Crosthwaite and other executives traveled to Switzerland, where Japan Tobacco and Philip Morris are based, to discuss Juul’s newly expanded option.
Juul has also resumed discussions with Altria. Altria cannot buy Juul outright over antitrust concerns.
If the FDA ultimately halts Juul’s sales, Juul could seek U.S. authorization for a newer version of its vaporizer released in Canada and the U.K.
Price Action: MO shares traded higher by 0.11% at $44.98 in the premarket on the last check Thursday.

Market News and Data brought to you by Benzinga APIs

Comments

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga