Altria is reportedly in talks with Canada-based cannabis company Cronos Group to acquire the latter
Altria, which is known for its popular cigarette brands like Marlboro, reportedly held talks with e-cigarette company Juul recently to acquire a major stake in it. Meanwhile, no deal has been confirmed between Altria and its potential buyout targets yet.
The tobacco industry is currently going through a difficult phase, amid falling cigarette sales mainly due to the low demand among youngsters. Though the emergence of e-cigarette as a ‘healthier’ alternative to traditional tobacco products is seen as a positive sign, vaping devices are currently facing regulatory restrictions for the potential risks they pose.
FDA adds restrictions on sale of e-cigarettes
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Cannabis, which is being legalized in more and more markets, is steadily gaining acceptance as a raw material in the production of certain medical formulation and soft drinks. If the Altria-Cronos deal materializes, it would mark the beginning of a new trend, for it would be the first time a tobacco company venturing into pot-based business in a full-fledged manner.
Soon after the media reports, Cronos (CRON) shares gained about 12% Monday. A similar spike was witnessed in the price of Altria’s stock, which moved up around 2%, recovering from the recent plunge that dragged it to a four-year low.