Altria Group Inc. has decided to compete with Juul Labs Inc., distancing itself from a vaping upstart in which it invested nearly $13 billion and which now faces a potential ban of its e-cigarettes in the U.S.
The decision gives the Marlboro maker the flexibility to acquire another e-cigarette brand or develop its own new vaping products. It also gives Juul the freedom to sell itself—or a significant stake—to one of Altria’s competitors. Altria is still Juul’s largest investor with a 35% stake.
