Altria is currently in investment talks with the Canadian marijuana company Cronos, The Guardian reported.
An Altria-Cronos agreement would represent one of the most substantial connections between tobacco and the cannabis sector.
Altria, the maker of Marlboro cigarettes and parent company of Philip Morris USA, did not comment on the rumour about the potential takeover, according to the report.
Cronos commented on the talks saying that there currently is not an agreement between the two companies and that the talks do not guarantee that an investment or other transaction will follow, The Guardian reported.
Cronos shares rose more than 6 per cent in early trading on 4 December 2018 on New York’s Nasdaq exchange, which pushed the company's market value to almost USD 2bn (GPB 1.6bn), The Guardian reported.