It may not happen, but if tobacco giants Phillip Morris International Inc (NYSE: PM) and Altria Group Inc (NYSE: MO) merged, it will be a boon for consumer staples exchange traded funds such as the Consumer Staples Select Sector SPDR (NYSE: XLP).
It's just speculation for now, but as Bloomberg notes, following Reynolds American (NYSE: RAI)'s recently completed $28 billion acquisition of Lorillard, pickings are slim for acquirers in the tobacco industry leaving Phillip Morris and Altria to possibly consider getting remarried.
Figuratively speaking, that reunification would be a big deal as Phillip Morris and Altria had market values of $132.6 billion and $108.6 billion at Tuesday's close. The stocks are the third- and sixth-largest holdings in XLP, the largest consumer staples ETF, ...
/www.benzinga.com/trading-ideas/long-ideas/15/07/5712851/a-tobacco-reunion-would-be-huge-for-consumer-staples-etfs alt=A Tobacco Reunion Would Be Huge For Consumer Staples ETFs>Full story available on Benzinga.com
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