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Marlboro maker Altria on Thursday said it invested $12.8 billion in vaping startup Juul Labs, a 35% stake valuing Juul at $38 billion and representing a massive bet on an exodus away from traditional cigarettes. But Altria stock fell as analysts questioned the price tag and the tobacco giant gave weak earnings guidance.
Howard Willard, Altria's CEO, said in a statement that the move was an effort to "prepare for a future where adult smokers overwhelmingly choose non-combustible products over cigarettes". The Wall Street Journal reported on Wednesday that Altria was close to a deal for a 35% Juul stake..
The investment also follows other moves by Altria to buy its way into faster-growing businesses. This month, the company said it planned to invest $1.8 billion in Canadian cannabis producer Cronos Group....
Source : Investor's Business Daily ( https://www.investors.com/news/altria-juul-labs-cronos-group-altria-stock/ )
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Posted : 16/02/2019 6:51 pm