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US: Wells Fargo: Chance of a Philip Morris-Altria merger now 70%

By  |  December 19, 2016

Wells Fargo said the probability of Philip Morris International acquiring Altria Group in the next several months is now at 70 percent, according to a Barron’s report.

Altria spun off Philip Morris’ overseas operations in 2008 as Philip Morris International to unlock additional value. Altria is still the parent company of Philip Morris USA.

But, the declining tobacco market made the attractive yesteryear tobacco spinoffs now less attractive given higher costs and falling tobacco sales and consumers turning toward healthy alternatives. Peers, British American Tobacco and Reynolds American, which also used to be part of the same company before breaking up, are also rumored to be working on a merger.

Full Content: Benzinga

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