Merger talks underway between cigarette makers, Juul e-cigarettes

Robert Besser
30 Jan 2023, 15:17 GMT+10

The Wall Street Journal has reported that e-cigarette maker Juul and three tobacco giants are negotiating potential sale, strategic investment, licensing or distribution deals
The report said that Juul had separate discussions with Philip Morris International, Japan Tobacco Group and Altria Group
An agreement, however, is not imminent and the discussions may not result in a sale or partnership

WASHINGTON D.C.: The Wall Street Journal has reported that e-cigarette maker Juul and three tobacco giants are negotiating potential sale, strategic investment, licensing or distribution deals.

The report said that Juul had separate discussions with Philip Morris International, Japan Tobacco Group and Altria Group.

An agreement, however, is not imminent and the discussions may not result in a sale or partnership, the Wall Street Journal added.

Juul, which reportedly filed for Chapter 11 bankruptcy and is partly owned by Marlboro maker Altria, has not responded to requests for comment.

Last autumn, Juul and Altria reached late-stage talks on a potential deal to sell Juul's international business or license its US intellectual property, but due to a potential bankruptcy filing the negotiations fell through in September.

Juul resumed discussions with Altria, which, after buying a 35 percent stake in the e-cigarette company in September, exercised the option to be released from its non-compete deal with Juul.

After claims that it deceptively marketed e-cigarettes and promoted tobacco use amongst youth, Juul is currently facing thousands of lawsuits filed around the US.

Juul secured preliminary court approval for a $255 million settlement of the claims by consumers in October. But in November, it secured an investment from early investors that allowed it to stay in business.

In June, the US Food and Drug Administration briefly banned Juul's e-cigarettes, but the order was put on hold after an appeal.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Sydney Sun.

More Information

22 ℃

Cloudy in Sydney

Business

Section

Deloitte agrees to pay $31 mln fine to China after mistakes in audit

BEIJING, China: Following the inability of China Huarong Asset Management Co Ltd to release financial reporting obligations in 2020, China ...

UBS to buy Credit Suisse for fraction of its value, Swiss government to underwrite losses

ZURICH, Switzerland - Depositors will be fully protected, shareholders will have their equity dwarfed, while bond holders will be largely ...

SpaceX, Netflix, Boeing join largest US business mission to Vietnam

HANOI, Vietnam: SpaceX, Netflix and Boeing will join what is described as the "biggest-ever" U.S. business mission to meet in ...

After winning Apple contract, Foxconn to build factory in India

TAIPEI, Taiwan: Reuters reported that after winning an order to manufacture wireless AirPods earphones for Apple for the first time, ...

Blocking China's chip industry will raise costs, warns founder of TSMC

TAIPEI, Taiwan: The founder of chip manufacturer TSMC, Morris Chang, said that he supports the efforts of the US to ...

Russia plans to take over Toyota's St. Petersburg plant, says TASS

MOSCOW, Russia: State run news agency TASS has reported that Russia's Industry and Trade Minister Denis Manturov said that Japanese ...

International

Section