Saturday, December 8, 2018

Marlboro maker places $2.4B bet on Canadian marijuana company

Altria Group taking 45% stake in Canadian marijuana provider Cronos Group

Marlboro cigarette maker Altria is diving into the Canadian cannabis market with a $2.4-billion investment in Toronto-based medical and recreational marijuana provider Cronos Group. (Gene J. Puskar/Associated Press)

The Canadian Press

Marlboro maker Altria Group Inc. will invest $2.4 billion in Canadian cannabis producer Cronos Group Inc. — marking a major foray by Big Tobacco into the pot sector — as the global market for weed continues to grow.

The Virginia-based parent of the company behind Marlboro, Parliament and other cigarette brands will acquire a 45 per cent ownership stake in Cronos with the initial investment announced Friday.

Altria can also invest up to a further $1.4 billion within four years that would increase its ownership stake in the Toronto-based pot producer to 55 per cent under the arrangement.  Read more >>