Marlboro maker leaps into the cannabis trade with USD 2.4 billion

One of the world's biggest tobacco companies is diving into the cannabis market with a USD 2.4 billion investment in Cronos Group, a Canadian medical and recreational marijuana company.
A Pack of Marlboro cigarettes. (File photo)
A Pack of Marlboro cigarettes. (File photo)

NEW YORK: One of the world's biggest tobacco companies is diving into the cannabis market with a USD 2.4 billion investment in Cronos Group, a Canadian medical and recreational marijuana company.

Altria, which makes Marlboro cigarettes, is taking a 45 per cent stake in the Toronto company.

Cronos said Friday that the Richmond, Virginia, tobacco company will pay another USD 1.4 billion for warrants that if exercised, would give the Altria a 55 per cent majority ownership stake.

Cronos first announced that it was in talks with Altria this week.

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