Marlboro cigarette maker Altria is in early stage talks to acquire Canadian cannabis producer Cronos, as it seeks to diversify its business beyond traditional smokers, people familiar with the matter told the Financial Times.
A takeover of Cronos by Altria amid spreading decriminalisation would rank among the largest investments in the budding pot industry. Shares in Cronos, which grows and distributes cannabis, climbed 14% in New York on Monday to $10.39, giving the Canadian company a market capitalisation of $1.9bn.
Cronos said in a statement after the market closed that it was “engaged in discussions concerning a potential investment” by Altria. The statement added: “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.”
