Tobacco giants Philip Morris and Altria Group holding merger talks
© Getty Images

Tobacco giant Philip Morris (PMI) confirmed Tuesday it is in merger talks with Altria, which spun off from the company in 2008, according to CNBC.

Since the split, Altria has kept its focus predominantly domestic while PMI has concentrated much of its activity on overseas business, according to the network.


The two companies have also taken different paths in where they focus investments as of late, according to CNBC. PMI recently secured Food and Drug Administration approval for iQOS, a device that heats tobacco instead of burning it. Altria will sell the device domestically under an existing deal.

Altria, meanwhile, invested nearly $13 billion in a 35 percent stake in leading e-cigarette company Juul, which is eyeing international expansion, which PMI’s resources could help it achieve. The company also purchased a 45 percent stake in Canadian cannabis firm Cronos.

Despite longtime speculation the companies would reunite, PMI said in a statement that there is “no assurance that any agreement or transaction will result from these discussions. Additionally, there can be no assurance that if an agreement is reached, that a transaction will be completed.”

PMI made nearly $80 billion in revenues last year, while Altria posted $25.36 billion in sales, according to CNBC, citing regulatory filings.