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Pricing is crucial to tobacco manufacturers given they realize about 3x the earnings leverage from a point of pricing vs

But e-cigarette use, also called vaping, has been spiking among high school students, and a study by an anti-smoking group this year found more than 80% of American youth are exposed to e-cigarette marketing

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With tobacco firms under pressure from health groups in developed economies and increasingly popular electronic cigarettes, a merger of this size would help them consolidate costs and resist competition from Asia, analysts say

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