Philip Morris will pay $2.7 billion to Altria for exclusive rights to sell IQOS in the U.S.

Representatives of Altria Group Inc, an American cigarette producer, announced that another American tobacco company Philip Morris International Inc (PM) has agreed to buy Altria’s exclusive rights to sell IQOS heated tobacco products on the U.S. territory at a deal price of $2.7 billion.

In Altria’s announcement, it’s outlined that the cigarette producer has already received $1 billion on the deal with Philip Morris. The rest will be paid by July 2023.

According to Philip Morris Chief Executive Officer Jacek Olczak, the company is ready to invest in IQOS and distribute it in the U.S. market all across the country. PM plans have made significant progress in this regard.

In his interview to Reuters, Olczak added that Philip Morris is well-prepared to autonomously develop and promote IQOS, as well as its assortment of other smoke-free products, through reliable distribution and retail channels in the U.S.