A major investor in leading e-cigarette-maker Juul has seen its stake in the company drop by more than two-thirds, reports BBC News. Tobacco giant Altria Group has blamed the $8.5bn (£6.5bn) fall in value on rising legal and regulatory threats. Having paid $12.8bn for a 35% stake in Juul in 2018, it revealed a huge write-down to investors.
Altria chief Howard Willard said he was "highly disappointed" with the lower valuation. The firm had already announced a $4.5bn hit last year.
The report says the US health regulator has announced it would ban fruit-flavoured pods, which had been among Juul's most popular products. The move followed similar measures in many US states. Other countries have also tightened rules.
Juul also faces criminal investigations in the US over its marketing practices. In September, its CEO stepped down, and was replaced by a former Altria executive. It will continue to help Juul with regulatory services including the submission of its products, which contain nicotine, for approval by the US Food and Drug Administration.
[link url="https://www.bbc.com/news/business-51318910"]Full BBC News report[/link]