Technology

The largest cigarette maker will invest $ 12.8 billion in vaping

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The Altria Group, which is one of the world’s largest cigarette manufacturers (owned by Philip Morris USA and others), intends to invest $ 12.8 billion in startup Juul. He is engaged in the release of devices for electronic steam generators and flavors for them. As part of the transaction, writes The Wall Street Journal, Altria will receive a 35% stake in Juul.

The deal may be announced in the coming days. As noted by the WSJ, in a short period of time the market valuation of Juul doubled. Probably, Altria decided to find a way to save profits, leaning away from the shrinking tobacco market.

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With an estimate of $ 38 billion, Juul will be more expensive than many well-known startups, including Airbnb and SpaceX.

According to sources, the margin of Juul business is much higher than that of tobacco companies. This makes the manufacturer of electronic steam generators very attractive.

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