Altria Group and Philip Morris International have ended merger discussions with Altria over e-cigarettes, reported The Wall Street Journal.
“While we believed the creation of a new merged company had the potential to create incremental revenue and cost synergies, we could not reach an agreement,” said Howard Willard, Altria’s CEO. “We look forward to continuing our commercialization of IQOS in the US under our existing arrangements.”
The two sides had been negotiating for weeks, but the Philip Morris board became increasingly uncomfortable with the deal amid the shifting US regulatory environment, said one person familiar with the matter.
Tobacco stocks have slumped after reports emerged the Food and Drug Administration announced it’s investigating 127 reports of seizures after vaping. Altria owns Juul Labs, which has come under fire for marketing unauthorized, modified risk tobacco products, including to youth.
The FDA has received around 92 new reports of people, especially kids and young adults, experiencing seizures after using e-cigarettes since it first announced its probe into the issue in April. It is unclear whether the e-cigarettes caused the seizures, reported the WSJ.
Full Content: Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
UK Probes Lindab’s Acquisition of HAS-Vent Amid Fears of Market Monopoly
Apr 28, 2024 by
CPI
Shein Faces EU Regulations Over User Data
Apr 28, 2024 by
CPI
Google Fights Back Against US Antitrust Lawsuit
Apr 28, 2024 by
CPI
US Homeland Security Establishes Blue-Ribbon Board with Tech CEOs to Advise on AI
Apr 28, 2024 by
CPI
FTC Accuses Amazon Executives of Using Disappearing Messaging Apps to Conceal Evidence
Apr 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI