A Consolidation of the Chess Pieces?

[zoiDman]

This had been a Rumor for the last Month or so. Now it appears to be something that is Indeed True.

Philip Morris in merger talks with Altria; e-cigs a focus - Reuters

Philip Morris International, Altria confirm they are in merger talks to reunite

Lots of Interesting Dynamics in this one.

 

[Rossum]

Yeah, I find it a bit strange. They were one and the same company until 2008, when PMI was spun off from Altria, and now they want to re-merge?

 

[zoiDman]

Yeah, I find it a bit strange. They were one and the same company until 2008, when PMI was spun off from Altria, and now they want to re-merge?

I think the Emergence of the e-Cigarette market about the time they Split, as well as subsequent FDA Regs is driving a Lot of this.

That and that Market we have to be Careful talking about.

 

[zoiDman]

Interesting timing. PMI can get Altria assets on the cheap (buy low).

Since PMI owns iQOS, will they throw juul under the bus (US only) and push iQOS? juul is getting footholds in Indonesia, South Korea and the Philippines; this sets up iQOS and juul to co-exist.

What makes this Kinda Unusual is that this Isn't a Raiders at the Gate type type takeover. They're call it a "Merger of Equals". (That, and of course, Altria used to be under the PMI umbrella.)

Say'n that PMI is going to do this or that Isn't really correct. Because JUUL isn't controlled by Altria. So they sure Aren't going to be controlled by a PMI/Altria joint merger.

Now how this would All Play out for JUUL in the USA? That's kinda hard to say.

Because Both Boards/Stockholders of PMI/Altria would need to Approve the Merger. And then there is the Small Detail of the Feds allowing it to go forward.

And ANYTHING that has JUUL involved in it is going to have to Pass thru the Hype Lens. And will be politically High Profile at best.