Juul said in a statement on Thursday that Altria is investing $12.8 billion for a 35% stake in the e-cigarette company. For Juul, a deal with Altria is likely driven more by strategic benefits than raising capital. Altria could help Juul access more brick-and-mortar shelf space, as well as give it access to research and marketing resources -- not to mention Altria’s customer base of smokers, many of whom are trying to quit. Juul, which has captured three-quarters of U.S. e-cigarettes sales, could help Altria ensure it reaps the financial gains of the growing e-cigarette market and bolster its international reach. While big tobacco companies are making and selling their own e-cigarettes (Altria sells e-cigarette Nu), tobacco firms’ financial interest in traditional smokes is still massive.

Source: Forbes December 20, 2018 18:22 UTC