(Reuters) – Marlboro maker Altria Group Inc said on Friday it had exercised its option to be released from its non-compete deal with e-cigarette maker Juul Labs Inc. Altria is looking to permanently terminate its non-competition obligations to Juul, as well as certain rights including its board designation rights, and reduce its voting power, according […]
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Altria opts to end non-compete agreement with Juul
(Reuters) – Marlboro maker Altria Group Inc said on Friday it had exercised its option to be released from its non-compete deal with e-cigarette maker Juul Labs Inc.
Altria is looking to permanently terminate its non-competition obligations to Juul, as well as certain rights including its board designation rights, and reduce its voting power, according to a regulatory filing.
Juul did not immediately respond to a request for comment from Reuters.
Altria in July slashed the value of its stake in Juul to $450 million, or just 3.5% of the original value, allowing itself the option to be released from its non-compete clause and invest or engage in any e-vapor business other than Juul.
At the time, Altria did not, however, opt to be released from those obligations, and said it still saw value in its investment rights, including substantial voting power, in Juul.
(Reporting by Praveen Paramasivam in Bengaluru; Editing by Shinjini Ganguli)