Talks of reuniting Virginia-based tobacco maker Altria and Philip Morris have ended without a deal. Altria's CEO Howard Willard said in a statement Wednesday that the two companies called off a potential $200 billion merger.
“While we believed the creation of a new merged company had the potential to create incremental revenue and cost synergies, we could not reach an agreement,” Willard said.
Philip Morris International handles global tobacco sales, while Altria sells products in the U.S. The two split in 2008.
Matthew Myers, president of the Campaign for Tobacco-Free Kids said no deal, is a good deal for consumers.
“Because It means that Philip Morris’ global reach and financial strength won’t be focused on the U.S. market,” Myers said.
The announcement comes as the CEO of Altria-owned E-cigarette company JUUL steps down amid concerns about vaping-related injuries and deaths. Philip Morris International and Altria recently invested in smoking alternatives like Juul as Americans move away from cigarettes.
The companies reportedly anticipated the marriage would allow them to combine forces on new products, like electronic cigarettes to offset declining traditional cigarette sales. Federal regulators, however, want to pull many vaping products from shelves as the vaping-related death toll rises.
