Philip Morris International strikes $16bn deal for Swedish Match

Philip Morris International has made a $ 16 billion deal to acquire Swedish Match, as the tobacco company is making its biggest bet to date in the market for cigarette alternatives.

The Stockholm-based company is a leader in snus, or oral nicotine bags, which originated in Sweden but in recent years have become increasingly popular outside the Scandinavian countries.

PMI announced on Wednesday that it will pay SKr106 per share for Swedish Match, a 39% premium to the share closing price on May 9, before talks between the two companies are announced. The proposal was recommended by the Swedish Match Board.

PMI’s brands include Marlboro outside the US, but like other tobacco companies it has pushed to the market non-smoking alternatives to cigarettes. Last year it barrel The UK-based inhaler company Vectura is in a deal worth £ 1 billion.

Jacek Olczak, CEO of PMI, said the deal “would create a non-smoking world champion – strengthened by perfection
Geographic footprints, commercial capabilities and product portfolios – and opening up significant platforms for growth in the US and around the world.

PMI did not elaborate on any cost savings from the deal, but said in a statement that its plans “do not include material changes to Swedish Match’s operating sites, or management and employees, including their terms of employment.”

Philip Morris International strikes $16bn deal for Swedish Match Source link Philip Morris International strikes $16bn deal for Swedish Match

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