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Philip Morris and Altria consider a possible mega-tobacco merger

Marlboro cigarettes staked on top of each other
Photo: Igor Golovniov/SOPA Images/LightRocket/Getty Images

Philip Morris International and Altria are in talks for an all-stock merger, the former confirmed on Tuesday morning. The companies cautioned that there's no guarantee a deal would be struck.

Why it matters: This would result in a mega-tobacco company, reuniting PMI and Altria more than a decade after they split. While Altria has focused on the U.S. market, PMI has been mostly selling overseas. Both have made moves into e-cigarettes.

The bottom line: "While Altria is helping Juul expand its reach in the U.S., the company has little help to offer overseas. Combining with PMI could change that," Angelica LaVito and David Faber write on CNBC.