Up in smoke: Why a big merger between two tobacco firms collapsed
So tell me if I got this right.
A company splits itself in 2 for strategic reasons, one invests in IQOS and the other in Juul.
They keep Juul guy at the helm til the shit hits the fan and then they replace the guy with one of their own and refuse to criticise the government’s steps on vaping because teens vaping etc.
Bad mistake and O my, we’ve lost a lot of money betting on the wrong horse.
PMI starts pushing IQOS as the solution to get to a smoke free world. It doesn’t appeal to teens or non smokers, because it’s just as foul as a cigarette and almost as bad so, perfect.
PMI shares go up 6%, Altria’s go down 0.25%. Altria now faces tough questions from shareholders and shares might go down even more, in which case PMI will probably start up negotiations for a merger again.
That’s correct, right?
Sounds to me like everything went according to plan. Net result; one happy family, vaping banned, IQOS the acceptable solution to combat smoking and shares up all around.