With the Altria Deal Dead, the Smoke Is Clearing at Philip Morris
Cigarette makers Philip Morris (NYSE: PM) and Altria (NYSE: MO) called off merger talks in late September. The merger made a lot of sense, but the timing was less than ideal. For now, Philip Morris will move ahead on its own through the ever turbulent tobacco industry environment. The sector today has several cross-currents to deal with, but Philip Morris' strategy, even without Altria, appears to have a strong tailwind.
Philip Morris was a spin-off from Altria in 2008. Altria controls the U.S. market, and Philip Morris controls everything outside the U.S. The split was originally done for litigation reasons, which have since died down. Thus the two companies know each other very well, and in fact market many of the same brands including Marlboro, the No. 1 brand in both the U.S. and internationally.
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Source Fool.com