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Philip Morris and Altria in talks to re-unite


The two companies issued a statement disclosing the talks, which they described as an all-stock, merger of equals. A merger would create a company with a market value of more than $200 billion.

Two of the world’s largest tobacco companies are discussing a deal aimed at domination of the fast-growing electronic-cigarette market

Stocks impacted: Philip Morris International (PM) Altria Group (MO)

They did not disclose the stake each would expect to hold in a new company, but according to some sources, Altria shareholders would receive no premium and own between 41% to 42% of the combined company, with Philip Morris shareholders owning the remainder. A deal could be announced within weeks, by the end of September. As a reminder, the two US-headquartered companies separated 11 years ago to focus on different geographic markets. On Tuesday, Philip Morris and Altria Group shares declined by 7.76% and 3.97%, respectively.

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