Altria Pays $1.8 Billion for Control of Marijuana Stock Cronos

Altria Lights Up Cronos Stock in a Marijuana Deal of a Different Flavor

Tobacco giant

jumped into the cannabis business Friday morning, with a $1.8 billion deal for Canada’s
Cronos Group

that raises doubts about the vertically integrated approach of most other pot companies.

Altria is paying 16.25 Canadian dollars per share in cash, or about US$12—a 40% premium over Cronos stock’s recent trading level on the Toronto exchange, where it dual-lists with the Nasdaq. For its cash, the seller of cigarette brands such as Marlboro will get a 45% stake in Cronos and a majority of

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