MERGER

ALTRIA AND PHILIP MORRIS

About the company

Altria group is an American corporation and one of the world largest producers and marketers of
tobacco, cigarettes and related products. The company's branding consultants, the within Group,
said: “The name change alternative offers the possibility of masking the negatives associated
with the tobacco business,” thus enabling the company to improve its image and raise its profile
without sacrificing tobacco profits. Altria's 88.1% stake in Kraft Foods Inc was spun off, through
a distribution of the remaining stake of shares (88.1%) to Altria shareholders. That same year,
Altria began selling all its shares of Philip Morris International to Altria stockholders, a spin off
that was completed on March 28, 2008. Again in 2007 the company began the acquisition of
cigar manufacturer.

For the fiscal year 2017, Altria reported earnings of US$10.208 billion, with annual revenue of
US$25.576 billion, a decline of 0.65% over the previous fiscal cycle. Altria's shares traded at
over $66 per share, and its market capitalization was valued at over US$118.5 billion in October
2018. As of 2018, the company ranked 154th on the Fortune 500 list of the largest United States
corporations by revenue

Stock price

Altria group stock price is 46.02 USD -0.64 (1,31%)↓

Share price

Date Open price High Low Close price Change %

07-02-2020 86.22 87.68 86.22 87.43 ↑1.43
06-02-2020 84.50 88.74 83.85 86.18 ↑2.59
05-02-2020 83.52 84.75 83.82 83.95 ↑0.45
04-02-2020 83.10 84.07 82.82 83.58 ↑0.75
03-02-2020 82.63 83.85 82.14 82.96 ↑0.34
31-01-2020 84.00 84.22 82.24 82.68 ↓1.98
30-01-2020 83.05 84.49 82.51 84.31 ↑0.47
29-01-2020 84.75 85.07 83.92 83.92 ↓0.87
28-01-2020 84.39 84.91 84.06 84.65 ↓0.05
Market share

 The merger between two companies, the biggest ever in the consumer sector and the
fourth largest deal of all time, would create a tobacco giant with a market capitalization
of approximately 200 billion.
 Under the terms of all the stock merger being discussed, altria shareholders would receive
no premium and own between 41% to 42% of the company.

Some analyst and investors fretted that the lack of geographic overlap between the two
companies could limit the value of operational synergies. Philip morris and altria shares
ending trading on 7.8% and 4% respectively.

Action process

 Further strengthen our brand portfolio through innovation leadership based on

consumer understanding.
 Successfully developed next generation products that meet adult consumer
preferences and reduce the risk, profitability commercialized those products.
 Increase speed to market improve organizational effectiveness and enhance
profitability
 Distribution of our stockholders in a tax free pursuant.
 Our annualized dividend rate will be $1.84 per common share.
 We have wide range of premium and above high price.