The proposed merger of tobacco giants Philip Morris International Inc. (NYSE: PM) and Altria Group Inc. (NYSE:MO) has been shelved.
"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," Philip Morris Chief Executive Officer André Calantzopoulos said early Wednesday morning in a written statement, referring to his company’s heat-not-burn device.
Separately, Altria Chief Strategy and Growth Officer K.C. Crosthwaite stepped down from the company to become Chief Executive Officer of Juul Labs Inc., replacing Kevin Burns, who is leaving amid intensifying criticism of vaping products.
Shares of Philip Morris rose 5% in early trading Wednesday, while Altria rose about 1%. Further details on why the merger has been called off were not provided by the companies.
