Altria is in talks to take a significant minority stake in e-cigarette company Juul, The Financial Times reported on Wednesday.
Any deal is likely several weeks away, The Wall Street Journal reported. Juul was last valued at $16 billion in a private fundraising round this summer.
A tie-up between the two companies could give Juul experience that Altria has gained through decades of regulation and litigation while giving Altria a jolt in revenue. However, a deal would mark a significant shift for Juul, which has repeatedly distanced itself from Big Tobacco companies like Altria.
Juul’s popularity has surged over the past year. That attention has attracted regulatory scrutiny. Food and Drug Administration Commissioner Scott Gottlieb has threatened to pull e-cigarettes off the market if the agency’s new restrictions on the sale of fruity flavors don’t slow an “astonishing” surge in teen use.
Full Content: Financial Times
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