Philip Morris Rules Out Future Merger With Altria
The “chapter with Altria is closed”
The possible reunion of Henrico County-based tobacco giant Altria Group Inc. with its former subsidiary, Philip Morris International, is no longer being considered, according to one report.
The Financial Times, a London-based publication, reported this week that the CEO of Philip Morris International said his company will no longer pursue a merger with Altria, the parent company of top U.S. cigarette maker Philip Morris USA.
Jacek Olczak, Philip Morris International’s CEO, said at the Financial Times Global Dealmaking Summit on Tuesday that the “chapter with Altria is closed,” the newspaper reported.
Philip Morris International was spun off as a separate publicly traded company from Altria in 2008 and does business only in overseas markets, while Altria operates businesses in the United States through subsidiaries such as Philip Morris USA, U.S. Smokeless Tobacco Co. and cigar maker John Middleton.
Industry analysts and observers have speculated for years that the two companies might eventually reunite as they both look to diversify their product lines and offset slow declines in cigarette sales.
The two companies said in August 2019 that they were discussing a possible all-stock “merger of equals.” However, those negotiations ended a month later without any deal.
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