Philip Morris (PM) in merger talks with Altria (MO)

• Update 9/25/19: PM Philip Morris International and Altria Group (MO) end merger discussions

Andr Calantzopoulos, CEO of PMI, said: "After much deliberation, the companies have agreed to focus on launching IQOS in the U.S. as part of their mutual interest to achieve a smoke-free future."

"While we believed the creation of a new merged company had the potential to create incremental revenue and cost synergies, we could not reach agreement," said Howard Willard, Altria's Chairman and Chief Executive Officer. "

• Philip Morris International (PM) and Altria Group(MO) have been in talks to merge. MO initially jumped about 10% on news that it would be an all-stock merger of equals, but shares have turned negative on reports that a merger might give Altria Group just 41% of the company with no premium.
• Philip Morris and Altria were at one time a single company, but the former was spun off a little more than a decade ago. Philip Morris was tasked with handling international markets, while Altria focused on the U.S.

Altria said it was considering a potential all-stock "merger of equals." But it said there was no guarantee a deal would be reached or approved.

The news comes as the tobacco industry looks for ways to pull sales higher amid waning demand for traditional cigarettes. The industry has turned its attention more toward e-cigarettes and heat-not-burn products, but those are now facing more regulatory scrutiny amid a public-health backlash.

Altria in December also agreed to invest $1.8 billion in Canadian cannabis producer Cronos Group (CRON). Later that month, the tobacco company, which currently owns Philip Morris USA, said it had taken a 35% stake in vaping startup Juul.