- Lately, e-cigarette maker Juul Labs Inc had separate discussions with Philip Morris International Inc (NYSE:PM), Japan Tobacco (OTC:JAPAF) (OYTC: JAPAY), and Altria Group, Inc (NYSE:MO) over a potential sale, investment or partnership.
- Altria, which owns a 35% stake in Juul, valued the vaping company at $1 billion in October, the Wall Street Journal reports.
- Juul, which represents 27% of e-cigarettes sold in U.S. stores tracked by Nielsen, was on the verge of bankruptcy in 2022 amid a regulatory dispute over its existence in the U.S. market.
- The U.S. pursued a federal ban on menthol cigarettes. California has already banned menthols.
- The U.S. proceeded to eliminate nearly all nicotine from cigarettes.
- As federal regulators revamped the industry, big tobacco companies competed to grab pieces of the U.S. e-cigarette market.
- The FDA in June ordered Juul to halt its U.S. sales which neared the settlement of lawsuits accusing it of marketing its products to children and teens.
- Juul reached talks with Altria last fall on a potential deal to sell Juul's international business or license its U.S. intellectual property. Still, those talks fell apart in September as Juul prepared for a possible bankruptcy.
- Last September, Altria shared plans to end the agreement with Juul, which helped the latter prepare for its sale.
- In January, Juul CEO K.C. Crosthwaite and other executives traveled to Switzerland, where Japan Tobacco and Philip Morris are based, to discuss Juul's newly expanded option.
- Juul has also resumed discussions with Altria. Altria cannot buy Juul outright over antitrust concerns.
- If the FDA ultimately halts Juul's sales, Juul could seek U.S. authorization for a newer version of its vaporizer released in Canada and the U.K.
- Price Action: MO shares traded higher by 0.11% at $44.98 in the premarket on the last check Thursday.
E-Cigarette Maker Juul Eyes Strategic Alternatives With Philip Morris, Japan Tobacco, Altria
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