Altria has announced plans to acquire e-cigarette and vaping giant NJOY for $2.75 billion in cash just days after selling its stake in Juul Labs, another vaping company that is currently mired in legal challenges.
“We believe we can responsibly accelerate U.S. adult smoker and competitive adult vaper adoption of NJOY ACE in ways that NJOY could not as a standalone company,” said CEO Billy Gifford in a press release. “We believe the strengths of our commercial resources can benefit adult tobacco consumers and expand competition."
While Juul offers a similar set of so-called smoke-free products, it faces a number of legal challenges that Gifford noted could persist for the foreseeable future.
“Juul faces significant regulatory and legal challenges and uncertainties, many of which could exist for many years,” he said.
Some legal challenges remain, however. The deal stipulates that $500 million in cash payments are contingent upon some NJOY products getting regulatory approval.
The owner of Marlboro cigarettes continues to pitch its interest in vaping and e-cigarettes as a way to get smokers to transition to vaping alternatives.
“We are excited to add NJOY’s e-vapor intellectual property as a new platform that we believe we can build on to help more adult smokers transition to smoke-free alternatives,” said Olivier Houpert, chief innovation and product officer for Altria.
American businesses that rely on Chinese goods are reacting with muted relief after the U.S. and China agreed to pause their exorbitant tariffs on each other’s products for 90 days. Many companies delayed or canceled orders after President Donald Trump last month put a 145% tariff on items made in China. Importers still face relatively high tariffs, however, as well as uncertainty over what will happen in the coming weeks and months. The temporary truce was announced as retailers and their suppliers are looking to finalize their plans and orders for the holiday shopping season. They’re concerned a mad scramble to get goods onto ships will lead to bottlenecks and increased shipping costs.
Shopping expert Trae Bodge discusses how talks between the U.S. and China is good news for now, but uncertainty remains for back-to-school and the holidays.
Jake Traylor, White House reporter at Politico, joins Cheddar to discuss how Trump is aiming to lower drug prices and how it differs from Biden's approach.
Sheryl Palmer, CEO of Taylor Morrison, talks tariff uncertainty, being a female leader in a male dominated industry and what homebuyers need to know. Watch!
