Hints and tips:
...These include the recombination of Altria, with a 35 per cent stake in Juul, with Philip Morris International....
...The turnround arguably matters most to AB InBev’s biggest shareholders — US tobacco group Altria; Colombia’s Santo Domingo family; the three Brazilian founders of 3G Capital; and a group of Belgian families...
...months to the end of September proved to be the quietest quarter for announced takeovers since the middle of 2017, even as investment bankers in the US tried to tee up a mega-deal between tobacco groups Altria...
...As a positive: (i) it is a core supplier to enterprises focusing on the heaving lifting of digital transformation through Enterprise DevOps, Hybrid IT Management, Predictive Analytics and Security, Risk...
...Pfizer agreed to pay $48 a share, a 62 per cent premium over Friday’s closing price, which gave the deal an enterprise value of $11.4bn....
...Shares in Altria, whose enterprise value is above $100bn, have fallen by as much as a fifth since early November....
...Any deal would value the company at more than NuVasive’s enterprise value, which sat at $3bn at the time of writing....
...Way to go Altria! Email the Lex team at lex@ft.com...
...DD Altria Although it may not be a household name, tobacco company Altria owns a 26.6 per cent stake in SABMiller and some of the best-selling cigarette brands — including Marlboro, L&M and Benson & Hedges...
...It also has 23 per cent of China’s beer market through a joint venture with China Resources Enterprise, known as CR Snow, while AB InBev has a 15 per cent share of the Chinese market....
...However, if divestments were required, China Resources Enterprise, SABMiller’s joint venture partner with a 51 per cent stake in Snow, is in pole position to buy the stake over which it may have pre-emption...
...Breakup theories have also drawn in Altria, Philip Morris International and even China National Tobacco Corporation....
...In China, SAB produces Snow, the world’s biggest beer brand by volume, in a joint venture with China Resources Enterprise....
...Philip Morris, the cigarette maker, became Altria, and Filtrona, maker of tobacco filters and moulded plastics, in late 2013 was reborn as Essentra....
...The Chinese market is dominated by state-owned enterprises and counterfeit goods, so the direct impact on multinationals will be small. But the message is clear....
...Since SAB management has the support of its key shareholders, Altria and the Santo Domingo family, AB would probably need to offer a premium of about 40 per cent, which would give the brewer an enterprise...
...Boeing dropped 2.1 per cent to $67.30 after Dubai Aerospace Enterprise said it was seeking to renegotiate orders with the aircraft maker and privately-held Airbus SAS as it attempts to reduce its debt levels...
...Dow Chemical, Altria and Eli Lilly were up 10.5 per cent to $24.43, 1.5 per cent to $19.58 and 4.3 per cent to $33.48, respectively, after overshooting analyst estimates....
...The chief executive of Kraft since 2006, she became chairman after Altria Group spun off the food maker in March 2007....
...That sent Enterprise Inns up 4.4 per cent to 449½p, and saw Punch Taverns rise 5 per cent to 709½p. Rio Tinto provided the day’s speculative feature....
...Having said this, the harsh reality is that the £11bn enterprise value being paid does look stretched....
...Rival pub operator Enterprise Inns closed 3.2 per cent higher at 634½p....
...Excluding Altria, owner of Philip Morris, net debt is just 11 per cent of market capitalisation. Once Altria spins off Kraft Foods next year, it will have only $2bn of net debt....
...“But the reason we bought Altria…is we think they are doing a good job of running their underlying business.”...
...Other property-backed stocks also gained including Enterprise Inns, up 2.8 per cent to 665½p, and Mitchells & Butlers, 4.4 per cent higher at 736p....
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