(This story has been up to date to incorporate Cronos’ affirmation of the investment talks.)
Cronos Group – the Ontario, Canada-based hashish multinational – confirmed it’s engaged in discussions with tobacco big Altria Group about a “potential investment” by the corporate that produces Marlboro cigarettes.
The announcement from Cronos got here after Reuters reported that Altria – one of many largest tobacco corporations in North America – is in “early stage talks” to accumulate the marijuana firm.
In its assertion, Cronos “confirmed that it is engaged in discussions concerning a potential investment by Altria Group Inc. … No agreement has been reached with respect to any such transaction and there can be no assurance such discussions will lead to an investment or other transaction involving the companies.”
Altria – proprietor of Marlboro maker Philip Morris USA and an investor in alcohol big Anheuser-Busch InBev – has been assessing market alternatives in the hashish business.
If a deal is accomplished, it might mark the primary vital investment in the hashish sector by a big alcohol or tobacco firm since Constellation Brands purchased a stake in Ontario-based Canopy Growth.
That strategic relationship started in October 2017 and was expanded in August 2018 when Constellation introduced a further investment of 5 billion Canadian dollars ($three.78 billion) in the marijuana firm.
Since then quite a lot of reported negotiations have did not materialize into formal offers, together with Coca-Cola with Alberta-based Aurora Cannabis and Diageo’s discussions with “at least three Canadian cannabis producers.”
Cronos is traded on the Toronto Stock Exchange and the Nasdaq beneath the ticker image CRON.
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