Amid growing scrutiny over Altria's (NYSE: MO) investment in leading electronic cigarette manufacturer Juul Labs, global tobacco giant Philip Morris International (NYSE: PM) squashed the idea of merging the two cigarette companies.
Philip Morris CEO Andre Calantzopoulos said the two companies were better off concentrating solely on distributing Philip Morris' IQOS heated tobacco device. It is the only e-cig to receive FDA marketing approval, and Altria has the rights to market, distribute, and sell the device in the U.S. "After much deliberation, the companies have agreed to focus on launching IQOS in the U.S. as part of their mutual interest to achieve a smoke-free future,” Calantzopoulos was quoted as saying in a press release.
But Bloomberg earlier this week reported that the two might not have totally written off the idea of a union. At a gathering of global political and business leaders in Davos, Switzerland, Philip Morris COO Jacek Olczak reportedly said in answer to a question about whether Philip Morris would revisit the idea of merger, "the chapter is closed, but not the book."