The revelation of $200bn all-stock merger talks between Altria and Philip Morris International saw $13bn wiped off their combined value. PMI investors are worried about US regulatory and litigation issues which were the main reason the two businesses were said to have originally split 11 years ago (Financial Times £). Investors gave the prospect of a deal a frosty reception propelling both companies’ shares lower. Another article in the Financial Times (£) notes both firms are investing in e-cigarettes despite intense opposition from regulators in Washington.

The fact the two companies are exploring a merger little more than a decade after they split speaks to profound changes in their marketplaces, technologies and attitudes towards their core production, says another Financial Times (£) article. Lex, in the Financial Times (£), says the case for reunification lies in the push for tobacco alternatives. Pooling resources to develop and market new products make sense, it says.

The Times (£) includes comments from Wells Fargo which said the merger would create the world’s leading nicotine company and leave it better equipped to handle the increasing importance of global integration. Share in Altria jumped more than 11% in New York. Philip Morris shares fell more than 6% (The Telegraph). Jefferies analyst Ryan Tomkins told The Daily Mail the merger made sense but he thought the timing strange given the possible risk to Juul in the US with regards to regulatory action.

Marks & Spencer has a week to save its place in the FTSE 100 – one of a handful of names that has been in the index since it was launched in 1984. Its relegation after 35 years would be an “historic” and a potent symbol of the plight of the high street (The Daily Mail). The article warns that Sainsbury’s and Morrisons have also “drifted” and could be threatened in the future. Stock market reshuffles will be based on share prices at the close of business on 3 September.

Consumer group Which? has slammed supermarkets for still offering what it said were misleading special offers and discounts despite rules designed to stop this. “Dubious” deals included multi-buys that cost more despite the supposed offer and promotions in which goods were sold at the special price most of the year (BBC). Which? analysed 459 offers and said that in the year it tracked deals, 65 were misleading and six supermarkets were guilty of at least one offence. Only Sainsbury’s met the new criteria for offers (Sky News).

The Advertising Standards Authority has banned a vaping advert for suggesting Olympic champion Sir Mo Farah had endorsed the product. The ad features a male model with a bald head and thick eyebrows with the strapline “Mo’s mad for menthol” but the Mo pictured is not the Olympic hero but a look-alike (BBC).

Papa John’s has named Rob Lynch as its new chief executive to replace Steve Richie. The pizza chain is looking to accelerate a turnround amid declining sales and fallout involving former chairman and founder John Schnatter. Lynch has previously worked for Taco Bell, HJ Heinz and Procter & Gamble (Financial Times £).

JM Smucker, whose brands include Jif peanut butter and JM Smucker jams has delivered an earnings downgrade and disappointing pet food sales. It forecast net sales would be flat for the full year – down 1% from a previous forecast of 1-2% growth. Adjusted earnings are forecast to be between $8.35 and $8.55 a share. The company posted an 11% year-on-year fall in adjusted earnings of $1.58 a diluted share, on a 6% dip in net sales to $1.78bn in the first quarter (Financial Times £).

Costco’s opening in Shanghai, China, yesterday, prompts Lex in the Financial Times (£) to question where on earth the typical Chinese shopper would stash all those bulk purchases when a typical Chinese apartment is a third of the size of an average US home. The article says exuberant scene greeted the opening of the warehouse but Lex questions how successful it would be not only on the population’s small homes but also the fact that the Chinese mostly shop locally and often – something to which huge destination stores are poorly adapted. Another article in the Financial Times (£) says Costco had to close early on its first day of operations because of the large crowds as “thousands” of people thronged the aisles. Traffic within a 1km radius was brought to a near-standstill. The BBC says some customers spent two hours queuing to pay for their purchases and others had to wait three hours for parking.

Pace Development plans to issue $60m of long-term debt in a bid to revive the US fortunes of gourmet grocery and café brand Dean & DeLuca, described in the Financial Times (£) as a pioneer in selling expensive curated cheeses, olive oils and cakes.

Lotte and Shilla, South Korea’s top two duty-free groups said they were in the running, along with Germany’s Gebr Heinemann, to operate the duty-free booze and tobacco shops at Singapore’s Changi Airport (Financial Times £).

The latest figures from the British Retail Consortium and Nielsen show prices in Britain’s shops fell in August amid a slowdown in consumer spending and an increase in promotional activity (The Times £).

Deep Blue Restaurants has “gobbled up” Harry Ramsden’s. It has bought it from Boparan Restaurant Group. Boparan said it would retain an interest in the enlarged business (The Times £). Deep Blue Restaurants will buy the 345 sites as well as the brand in a debt-free deal for an undisclosed price (The Telegraph).

The French agriculture ministry has predicted French winemakers are poised to suffer a 12% hiccough in production this year because of spring frosts, drought and hailstorms (The Times £).

Well Pharmacy has spent £7m building medicinal stocks to prepare for a potentially disruptive Brexit as a “prudent measure”. The action is contrary to government advice (The Times £).

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