Altria Group’s investment in e-cigarette manufacturer JUUL Labs Inc. was first announced at the end of 2018 but in 2020, that investment remains in limbo as federal antitrust officials probe the big tobacco company’s control over shelf space in stores.
At the end of 2018 it was announced that Altria Group had invested $12.8 billion in JUUL Labs Inc. for a 35 percent stake in the company [read more here]. This came a mere two weeks after Altria discontinued many of its own e-cigarette brands. As part of the Federal Trade Commission (FTC) review, Altria and JUUL agreed to hold off on certain parts of its deal until at least early January 2020 once the FTC’s review had been completed. That date, however, has passed and the review continues on. One aspect of the deal that remains unfulfilled is Altria’s conversion of its nonvoting shares to voting shares and its move to appoint representatives to JUUL’s board and including JUUL’s earnings toward its own earnings.
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