Medicinal Mondays – Tobacco on the way out?
Could these signs lead to a healthier future? Tobacco on the way out, Marlboro is moving away from Cigarettes.
Altria takes C$2.4bn stake in Canadian pot group Cronos.
The Financial Times wrote that Marlboro cigarette manufacturer Altria has struck a deal to have a stake in Canadian Cronos to acquire a C$2.4bn ($1.86bn) shareholding, as a portion of the tobacco giant’s attempts to diversify its business away from conventional smokers.
Altria will own a 45 percent share in Cronos at C$16.25 per share, a 33 percent premium to the stock’s closing price of C$12.20 on November 30, the day before reports of Altria’s interest became public.
Altria will even have the choice to acquire an extra 10 percent of the business at C$19, giving it a controlling stake of 55 percent. Included in this deal, Altria has to nominate four directors, including one independent director, to work on Cronos’ board.
Cronos will consequently become Altria’s “exclusive partner for pursuing cannabis opportunities throughout the world”.
FULL ARTICLE AND SOURCE: https://on.ft.com/2zNFDik