Wall Street stock Altria up: Altria tries new attack on e-cigarette market with Njoy purchase

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The Marlboromanufacturer announced Monday that it would acquire the company for $2.75 billion.

Another $500 million could flow if certain regulatory decisions fail in favor of certain Njoy products. Altria wants to pay the purchase price entirely in cash. Njoy was founded in 2007 and is based in Arizona. It is one of only a few companies whose e-cigarettes are approved by US regulators.

Shortly before the deal was announced, Altria drew a line under its unfortunate involvement with Njoy rivals by exiting Juul. Altria had entered there in December 2018 for 12.8 billion dollars with 35 percent, it was the largest investment by the group. In the meantime, the stake has been almost completely written off.

At times, Juul had sold like hot cakes with its innovative flavored e-cigarettes that looked like USB sticks. But then the start-up from San Francisco came under heavy criticism and was targeted by supervisory authorities and US class action plaintiffs because of the offensive marketing of the products to younger target groups.

Altria shares temporarily gained 1.29 percent on the NYSE to $47.13.

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RICHMOND (dpa-AFX)

Image sources: Altria