Philip Morris clinches £14bn deal to buy smoke-free tobacco firm
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Philip Morris stays away from cigarettes as smoke-free tobacco firm buys Swedish Match for £14bn deal
The maker of Marlboro cigarettes will buy the Swedish manufacturer of smoke-free tobacco products for £14 billion after Elliott Management backed the deal.
Philip Morris International will take control of Swedish Match, subject to approval from 83 percent of its shareholders.
Activist investor Elliott had built up a 10.5% stake in the Stockholm-based company and was initially against the offer.
Buyout: Philip Morris International takes control of smoke-free tobacco company Swedish Match, after approval from 83% of its shareholders
But it is now believed to have offered its shares to Philip Morris, paving the way for the takeover.
Swedish Match makes alternatives to cigarettes, including snus, a tobacco product placed between the upper lip and gums. The company also sells the Zyn tobacco-free nicotine pouch.
Philip Morris is picking up the company as it looks set to move from cigarettes to so-called next-generation products to create a “smoke-free future.”
By purchasing Swedish Match, it will also gain a foothold in the smoke-free tobacco market in the US, where the Swedish company is a major player.