The coast seems clear for Altria to move forward with its acquisition of e-cigarette maker NJOY.
Altria Group, Inc. announced that it made it past the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 on its deal to acquire NJOY Holdings, Inc. The waiting period was part of the review process by the Federal Trade Commission (FTC) and the Department of Justice.
The US$2.75 billion NJOY deal can now move forward with no further regulatory review by the federal antitrust authorities required in connection with the transaction. Subject to the satisfaction of other customary closing conditions, Altria expects to complete the transaction in this year’s second quarter.
The news comes three months after Altria announced the agreement, whose conditions include an extra US$500 million in cash payments that are contingent to how specific NJOY products are regulated.
Following NJOY's acquisition, Altria will have full global ownership of products and technologies across the three largest smoke-free categories in addition to a majority-owned joint venture, Horizon Innovations LLC, with JT Group for the US commercialization of heated tobacco stick products.
Altria’s smoke-free portfolio includes ownership of US Smokeless Tobacco Company LLC, the leading global moist smokeless tobacco (MST) manufacturer, and Helix Innovations LLC, a leading manufacturer of oral nicotine pouches. It also has exclusive US commercialization rights to IQOS devices and Marlboro HeatSticks through April 2024.