Philip Morris launches recommended $16 billion cash offer for Swedish Match By Reuters

© Reuters. Marlboro cigarette packs are on display at a store in St. Petersburg, Russia, on April 10, 2022. REUTERS PHOTOGRAPHY

STOCKHOLM (Reuters) – Marlboro maker Philip Morris International Inc (NYSE 🙂 said on Wednesday it was making a recommended cash offer to buy Swedish tobacco and nicotine maker Swedish Match for 106 Swedish kronor per share.

The value of the bid for the Stockholm-listed company amounted to approximately SEK 161.2 billion ($ 16 billion), the company said in a statement.

Shares of Swedish Match jumped to a record high on Tuesday after Philip Morris International confirmed media reports that it was in talks to buy it in a bid for the fast-growing market for cigarette alternatives.

It derives most of its Swedish-style tobacco profits from snus, but sales of its Zyn tobacco-free nicotine bags are growing rapidly in Scandinavia and the United States.

Swedish Match’s board of directors said in a separate statement that it believes that “the terms of the offer recognize Swedish Match’s long-term growth prospects, given the risks associated with realizing those prospects.”

(1 $ = 10.0381 Swedish kronor)

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