...August 27, 2019 MILAN (S&P Global Ratings) Aug. 27, 2019--Earlier today, Philip Morris International Inc. (PMI) and Altria Group Inc. announced they are in discussions regarding a potential all-stock merger of equals. S&P Global Ratings believes discussions are in the early stages and an agreement would still be subject to the approvals of the companies' boards, shareholders, and regulators. Based on the facts currently available, we do not believe there is sufficient information to warrant rating actions on PMI or Altria. We believe there will be significant roadblocks to completing the transaction, including coming to agreement on a valuation acceptable to both parties. Specifically, we believe there could be significant disagreement over the valuation of the companies' next-generation products given the heightened regulatory scrutiny over some products (i.e. e-cigarettes) and the uncertain impact future regulatory actions could have, particularly in the U.S. If in the coming months there...
