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Juul Labs (JUUL) is reportedly in the early stages of negotiations with tobacco giants Philip Morris International (PM), others (MO), and Japan Tobacco (OTCPK:JAPAY).
Sources said The Wall Street Journal that the Juul I’m looking for on options that include potential business sale, strategic investment, product licensing or distribution agreement.
Despite numerous regulatory and legal challenges, Juul could be an attractive partner or target with the company holding a 27% market share of e-cigarettes sold in US stores, according to recent Nielsen tracking.
Others (MO) already owns a 35% stake in Juul and has considered deals in the past to buy Juul’s international business or license its intellectual property in the US. Ultimately, the Richmond-based company disclosed in an SEC filing last year that it plans to terminate its non-compete agreement with the cigarette company.
Sector clock: Shares of Philip Morris rose after Goldman Sachs upgraded its buy rating to short-term potential