Al­tria buys $1.8B stake in Canada pot pro­ducer

Centre Daily Times - - Business / Weather - — BLOOMBERG NEWS

Al­tria Group Inc., the U.S. maker of Marl­boros, made a $1.8 bil­lion in­vest­ment in a Cana­dian pot com­pany Fri­day based on a sim­ple premise: Cannabis is grow­ing fast, and cig­a­rettes are not.

Al­tria has agreed to take a 45 per­cent stake in Toronto-based mar­i­juana pro­ducer Cronos Group Inc., mark­ing a ma­jor tobacco com­pany’s first foray into cannabis. It has the op­tion to take ma­jor­ity con­trol in the fu­ture.

The tobacco gi­ant si­mul­ta­ne­ously said it will kill two of its next-gen­er­a­tion prod­ucts, fu­el­ing talk that a po­ten­tial deal with Juul Labs Inc. could come soon.

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