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☆ Altria’s Latest Vape Could Be Even Pricier Than Its First
▼ + stars: | 2023-02-28 | by ( Carol Ryan | ) www.wsj.com time to read: 1 min

NJOY has a roughly 2% share of the U.S. vape market by volume, whereas its larger rival Juul has around a quarter. Altria ’s latest potential deal seems eye-wateringly expensive, but the company doesn’t have many better options. The maker of Marlboro cigarettes is in talks to buy e-cigarette brand NJOY for $2.75 billion, The Wall Street Journal reported on Monday afternoon. Altria could pay an additional $500 million in an earnout if certain regulatory milestones are met. The tobacco company also plans to sell the 35% stake it has owned since 2018 in rival vape brand Juul Labs.

NJOY is one of the few e-cigarette makers whose products have clearance from federal regulators. Marlboro maker Altria Group Inc. is in advanced talks to buy e-cigarette startup NJOY Holdings Inc. for at least $2.75 billion and plans to divest its stake in Juul Labs Inc., according to people familiar with the matter. The deal for NJOY, one of the few e-cigarette makers whose products have clearance from federal regulators, could be announced as soon as this week, the people said, though the talks could still fall apart. The proposed deal includes an additional $500 million earnout if certain regulatory milestones are met, the people said. The Wall Street Journal reported last June that NJOY had hired advisers and was exploring a sale.

☆ Altria in talks to buy vaping startup NJOY for about $2.75 billion - WSJ
▼ + stars: | 2023-02-27 | by ( ) www.reuters.com time to read: +1 min

Feb 27 (Reuters) - Altria Group Inc (MO.N) is in advanced talks to buy e-cigarette startup NJOY Holdings Inc for at least $2.75 billion, the Wall Street Journal reported on Monday, citing people familiar with the matter. The Journal further notes that the proposed deal includes an additional $500 million earnout if regulatory milestones are met. The Journal reported in October Juul was preparing to file for Chapter 11 bankruptcy, while searching for an alternative - such as a sale, investment or loan - that could stave off a filing. NJOY and Altria did not immediately respond to Reuters' requests for comment. In July, the WSJ had reported that NJOY has hired bankers for a possible sale of the company, adding that the privately held firm is likely to be valued at up to $5 billion.

☆ The Battle for America’s Smokers Is Heating Up
▼ + stars: | 2023-02-09 | by ( Carol Ryan | ) www.wsj.com time to read: 1 min

So far, tobacco firms have managed to balance spending billions of dollars on new, smoke-free products with milking their old-school cigarette brands for profits. The American market may be approaching a tipping point that makes this trickier. U.S. cigarette sales were unusually weak in 2022. On Thursday, Lucky Strike’s owner, British American Tobacco , said it sold 15.5% fewer cigarettes in the U.S. than in 2021. Altria , which makes Marlboro, said its full-year cigarette volumes fell 9.5% in results last week.

☆ Marlboro Maker’s Sales Fall as Smokers Switch to Cheaper Cigarettes
▼ + stars: | 2023-02-01 | by ( Jennifer Maloney | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/altria-mo-q4-earnings-report-2022-11675259807

☆ Juul in deal talks with three tobacco giants - WSJ
▼ + stars: | 2023-01-25 | by ( ) www.reuters.com time to read: +1 min

Jan 25 (Reuters) - E-cigarette maker Juul Labs Inc is in early talks with three tobacco giants for a potential sale, strategic investment, licensing or distribution deal, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. The company, which was reportedly looking to file for Chapter 11 bankruptcy, have had separate discussions with Philip Morris International Inc (PM.N), Japan Tobacco Group (2914.T) and Altria Group Inc (MO.N), the report said. Juul, partly owned by Marlboro maker Altria, did not immediately respond to a Reuters request for comment. A deal is not imminent and the discussions may not result in a sale or partnership, the people told the Journal on Wednesday. Last week, Juul secured preliminary court approval of a $255 million settlement resolving claims by consumers that it deceptively marketed e-cigarettes.

☆ U.S. judge grants preliminary approval to Juul consumer settlement
▼ + stars: | 2023-01-21 | by ( ) www.reuters.com time to read: +2 min

Jan 20 (Reuters) - Juul Labs Inc on Friday secured preliminary court approval of a $255 million settlement resolving claims by consumers that it deceptively marketed e-cigarettes, as the company seeks to resolve thousands of lawsuits. U.S. District Judge William Orrick in San Francisco said the proposed class action settlement resolving claims by consumers who said they overpaid for Juul's vaping products was "fair, reasonable, and adequate," according to a court filing. The settlement is part of a larger, global agreement by Juul to resolve thousands of lawsuits by school districts, local governments and individuals accusing it of contributing to a youth vaping epidemic. The company last month said it had reached settlements with about 10,000 plaintiffs covering more than 5,000 cases. It has not said how much it will pay, though the Wall Street Journal reported deal is valued at $1.7 billion.

☆ U.S. judge grants preliminary approval to Juul settlement
▼ + stars: | 2023-01-20 | by ( ) www.reuters.com time to read: +1 min

Jan 20 (Reuters) - Juul Labs Inc won preliminary approval of a settlement aimed at ending thousands of lawsuits alleging the company was a major cause of a youth-vaping epidemic in the United States, according to a court filing on Friday. U.S. District Judge William Orrick in San Francisco said Juul's deal to settle almost 10,000 lawsuits filed by local governments across the country seemed to be "fair, reasonable, and adequate." Juul did not immediately respond to a Reuters request for comment. The court document provided no details of the terms of the settlement. The company earlier said it had reached settlements with about 10,000 plaintiffs covering more than 5,000 cases in California.

☆ Jefferies upgrades Philip Morris, says shares can rise nearly 20% on smokeless alternatives
▼ + stars: | 2023-01-19 | by ( Sarah Min | ) www.cnbc.com time to read: +1 min

It's time to buy Philip Morris International as the Marlboro maker shifts to smokeless alternatives, according to Jefferies. Philip Morris said it expects its efforts to become the sole owner of Swedish Match will support its "ambition to deliver a smoke-free future." On the former, it is the global leader, with estimated RRP share of 23%, compared to 21% share in combustibles," Bennett wrote. Philip Morris shares are down nearly 2% in 2023, after closing last year up more than 12%. Meanwhile, the analyst's $118 price target, up from $86, suggests shares can jump another 18% from Wednesday's closing price.

☆ Stocks making the biggest moves midday: Norwegian Cruise Line, Allstate, Roblox and more
▼ + stars: | 2023-01-19 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

A Norwegian Gateway cruise ship leaves from the Manhattan port during sunset in New York City, United States on April 10, 2022. Vornado Realty Trust — Shares of the real estate investment trust shed 3.3% after cutting its quarterly dividend to 37.5 cents per share from 53 cents. Roblox — Roblox shares shed 6% following a downgrade to an underweight rating by analysts at Morgan Stanley. Alcoa — Shares of the aluminum company fell 4.6% on Thursday after the company announced its fourth quarter results. Alcoa's adjusted fourth quarter loss was 70 cents per share, narrower than the 81 cent loss expected, according to StreetAccount.

☆ Bargain-Hunting Smokers Give Big Tobacco a Headache
▼ + stars: | 2022-12-08 | by ( Carol Ryan | ) www.wsj.com time to read: 1 min

British American Tobacco said that more U.S. smokers are switching to cut-price cigarettes. Americans are searching for deals beyond the usual grocery-store aisles. Major tobacco companies face a trade-off between protecting their profits and losing smokers to the cheapest brands. British American Tobacco said that more U.S. smokers are switching to cut-price cigarettes when it updated investors on current trading Thursday. Marlboro’s manufacturer Altria pointed out the same trend when it recently reported third-quarter results.

☆ Juul reaches settlements covering more than 5,000 cases
▼ + stars: | 2022-12-07 | by ( The Associated Press | ) www.nbcnews.com time to read: +3 min

Juul Labs has reached settlements covering more than 5,000 cases brought by about 10,000 plaintiffs related to its vaping products. Financial terms of the settlement were not disclosed, but Juul said that it has secured an equity investment to fund it. The e-cigarette maker faced thousands of suits brought by individuals and families of Juul users, school districts and Native American tribes. “These settlements represent a major step toward strengthening Juul Labs’ operations and securing the company’s path forward,” a company spokeswoman said in a statement. Juul rocketed to the top of the U.S. vaping market five years ago on the popularity of flavors like mango, mint and creme brulee.

STOCKHOLM, Nov 28 (Reuters) - Philip Morris International (PMI) (PM.N) said on Monday it now owned a big enough stake in Swedish Match (SWMA.ST) to initiate a compulsory redemption of remaining shares in its Swedish peer and would take it off the stock market. Marlboro maker PMI in May launched a $16 billion takeover bid for the Swedish tobacco and nicotine products company. Buying Swedish Match, with its popular wet snuff "snus" products and tobacco-free nicotine "ZYN" pouches, will aid PMI in its stated ambition to move away from health-harming cigarettes and eventually become a smoke-free company. Swedish Match was not immediately available for comment. ($1 = 10.3774 Swedish crowns)Reporting by Marie Mannes and Anna Ringstrom, editing by Essi Lehto and Susan FentonOur Standards: The Thomson Reuters Trust Principles.

The once red-hot vaping company plans to lay off about 400 people and reduce its operating budget by 30% to 40%. The company said the investment would help Juul run its business operations, while it goes ahead with its administrative appeal of the U.S. Food and Drug Administration's marketing denial order related to its e-cigarettes. Last month, the Wall Street Journal reported Juul was preparing to file for Chapter 11 bankruptcy while searching for an alternative — such as a sale, investment or loan — that could stave off a filing. But following an appeal, the health regulator put the ban on hold and agreed to an additional review of Juul's marketing application. Reporting by Deborah Sophia and Ananya Mariam Rajesh in Bengaluru; Editing by Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

☆ Altria Looks Like a Smoker Struggling to Quit
▼ + stars: | 2022-11-08 | by ( Carol Ryan | ) www.wsj.com time to read: 1 min

Die-hard smokers tend to look more aged than those who have cut back. The U.S. tobacco industry is about to see the corporate equivalent as cigarette alternatives spark competition between the two companies behind the Marlboro brand, Altria and Philip Morris International . PMI’s $16 billion takeover of Swedish Match looks set to go ahead. PMI needs 90% to delist Swedish Match and has given index funds and individual investors a further two weeks or so to tender their shares. All of the target’s main shareholders have cashed in, including activist hedge fund Elliott Management, which had built a stake of more than 10%.

☆ Philip Morris wins 83% stake in Swedish Match, goes ahead with $16 bln takeover
▼ + stars: | 2022-11-07 | by ( ) www.reuters.com time to read: +1 min

Nov 7 (Reuters) - Marlboro maker Philip Morris International (PMI) (PM.N) said on Monday it was going ahead with its $16 billion plan to buy Swedish Match (SWMA.ST) despite winning accept from owners with no more than 82.59% of shares in the Swedish peer. By Swedish law a bidder can only initiate a compulsory redemption of remaining shares if voluntary acceptance is above 90%. PMI in May made an offer to buy Swedish Match for 106 crowns per share, valuing the company at $16 billion. In October it raised the bid to 116 crowns per share after some investors said it was too low. "We look forward to welcoming Swedish Match's employees and leading oral nicotine portfolio into the PMI family," the U.S. firm said.

The respective chief executives of $139 billion Philip Morris International (PM.N) and $95 billion Rio Tinto (RIO.L) are attempting takeovers that are central to their strategies. Olczak, who needs 90% of shareholders to accept in order to automatically de-list the company, initially faced opposition to his $16 billion offer. The mining giant asked for the postponement at the request of Quebec’s financial regulator, Turquoise Hill said. Two key investors in Turquoise Hill have agreed to withhold their votes on the bid, with their final deal dependent on Canadian arbitration. Turquoise Hill shares closed at C$41.6 on Nov. 4.

☆ Elliott backs Philip Morris's $16 billion Swedish Match takeover -FT
▼ + stars: | 2022-11-06 | by ( Reuters Staff | ) www.reuters.com time to read: +1 min

(Reuters) -Activist investor Elliott Management Corp has decided to back Marlboro-maker Philip Morris International’s (PMI) $16 billion offer for Swedish Match AB, the Financial Times reported on Sunday. FILE PHOTO: Moist powder tobacco "snus" cans are seen on shelves at a Swedish Match store in Stockholm, Sweden October 24, 2018. U.S. investor Elliott, PMI and Swedish Match declined to comment. Elliott has been building its stake in Swedish Match for months, reaching more than 10% in October. Swedish Match controls about half the world’s market for snus - a moist, smoke-free snuff - but one of its fastest-growing products is its tobacco-free “ZYN” nicotine pouches.

The deadline for shareholders to tender shares in support of the bid was 1600 GMT on Friday. Protean Funds had said previously it wanted to fight for Swedish Match and thought PMI's bid undervalued the company. It is still not known what activist investor Elliott Management, which owns over 10% in Swedish Match, has done. Under Swedish law, PMI needs 90% of shareholders to agree to the deal to get full control of Swedish Match. PMI bid lights up Swedish Match stock($1 = 10.9446 Swedish crowns)Reporting by Marie Mannes; Editing by Jane Merriman, Josephine Mason, Kirsten DonovanOur Standards: The Thomson Reuters Trust Principles.

☆ Factbox: Companies count the cost of ditching Russia
▼ + stars: | 2022-11-03 | by ( ) www.reuters.com time to read: +6 min

INDITEX (ITX.MC)Zara owner will book a provision of 216 million euros after agreeing to sell its Russia stores to UAE-based Daher Group. TRATON (8TRA.DE)Volkswagen's (VOWG_p.DE) truck division Traton in September said disposing of some assets in Russia would cause a 550 million euro loss. CREDIT AGRICOLE (CAGR.PA)Credit Agricole provisioned more than 500 million euros related to its Russian exposure in Q1. LINDEThe world's largest industrial gases company's exit from Russia recorded impairments of $993 million from its Russia exit. SIEMENS (SIEGn.DE)The Munich-based engineering and tech firm said in May it would take a 600 million euro hit in Q2 for exiting Russia.

☆ Swedish Match long-term shareholder Framtiden not tendering shares to Philip Morris
▼ + stars: | 2022-11-01 | by ( Yousef Saba | ) www.reuters.com time to read: 1 min

[1/2] A woman poses with a cigarette in front of Philip Morris International logo in this illustration taken July 26, 2022. REUTERS/Dado Ruvic/IllustrationNov 1 (Reuters) - Framtiden Partnerships, a long-term shareholder of Swedish Match (SWMA.ST) of nearly two decades, said it will not accept Marlboro-maker Philip Morris’ (PM.N) higher offer of 116 Swedish crowns per share. Dan Juran, Managing Member of Framtiden which owns almost 1% of shares in Swedish Match, said they will still not tender their shares and hopes that the deal will fail. Reporting by Marie Mannes; Editing by Chizu NomiyamaOur Standards: The Thomson Reuters Trust Principles.

☆ Altria to Take on Juul, Philip Morris in Smoke-Free Tobacco
▼ + stars: | 2022-10-27 | by ( Jennifer Maloney | ) www.wsj.com time to read: 1 min

Altria plans to work with Japan Tobacco to market two new devices that heat tobacco but don’t burn it or produce smoke. Marlboro maker Altria Group Inc. said it is forming a partnership with Japan Tobacco Group to develop and sell heated tobacco devices in the U.S. and abroad. The move pits Altria against its former strategic partners, Philip Morris International and Juul Labs Inc., in the race to dominate the market for smoke-free tobacco products. It also gives Altria access to markets outside the U.S. Altria’s sales have been limited to the U.S. since it split from Philip Morris in 2008.

☆ Altria quarterly earnings miss estimates as cigarette maker's revenue falls
▼ + stars: | 2022-10-27 | by ( Stefan Sykes | ) www.cnbc.com time to read: +2 min

Altria Group signage is displayed on a monitor on the floor of the New York Stock Exchange. Cigarette maker Altria Group on Thursday reported third-quarter earnings that missed Wall Street estimates as its revenue fell. Revenue: $5.41 billion vs. $5.59 billion expected. "We are excited to begin a new partnership with JT Group, a leading international tobacco company," said Billy Gifford, Altria's chief executive officer. For its third quarter, Altria reported revenue net of excise taxes of $5.41 billion, a decline of 2% from a year ago.

☆ Altria partners with Japan Tobacco to bolster smoke-free category
▼ + stars: | 2022-10-27 | by ( ) www.reuters.com time to read: +2 min

[1/2] A woman poses with a cigarette in front of Altria logo in this illustration taken July 26, 2022. REUTERS/Dado Ruvic/IllustrationOct 27 (Reuters) - Marlboro maker Altria Group Inc (MO.N) on Thursday announced a strategic partnership with Japan Tobacco (2914.T) in an attempt to boost its smoke-free category. Altria and JT will jointly establish Horizon Innovations LLC, which would be responsible for U.S. marketing and commercialization of heated tobacco stick (HTS) products owned and developed by either company. Altria said the joint venture would be through its subsidiary Philip Morris USA that will hold a 75% economic interest in Horizon and Japan Tobacco International, a subsidiary of JT, holding the rest. Philip Morris agreed to pay $2.7 billion for the exclusive right to sell IQOS heated tobacco products in the United States.

☆ EXCLUSIVE Philip Morris to get EU nod for Swedish Match with asset sale -sources
▼ + stars: | 2022-10-24 | by ( Foo Yun Chee | Tatiana Bautzer | ) www.reuters.com time to read: +1 min

Philip Morris and Swedish Match also declined to comment. Philip Morris last week hiked its offer for Swedish Match in an effort to win over shareholders waiting for a sweetened bid. Hedge funds, including Elliott Management Corp, have built up their stakes in Swedish Match in hopes of a higher bid. Under Swedish law, 90% of Swedish Match shareholders need to approve the offer before Nov. 4. Philip Morris is sticking to this acceptance rate.

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