In 2018, Altria announced
that it entered into an agreement to acquire a 45 percent equity stake in Cronos Group Inc.
, a leading global cannabinoid company, headquartered in Toronto, Canada.
This investment positions Altria to participate in the emerging global cannabis sector, which we believe is poised for rapid growth over the next decade. It also creates a new growth opportunity in a category that is adjacent and complementary to our core tobacco businesses.
The transaction is subject to customary closing conditions, including Cronos Group shareholder approval and receipt of regulatory approvals, which will be pursued promptly. The transaction is expected to close in the first half of 2019. At closing, Cronos Group will remain a Canadian publicly-traded company headquartered in Toronto, Canada and continue to be led by its existing management team.