The offer of 106 Swedish kronor per share to the shareholders of the Swedish tobacco industry Swedish Match AB was submitted, according to a relevant announcement, by the subsidiary of Philip Morris International Inc., Philip Morris Holland Holdings BV.
The total value of the bid is approximately US $ 16 billion (SEK 161.2 billion). The offer is estimated to be made public on June 22, 2022 and will expire at the end of September.
The completion of the tender will depend, inter alia, on the receipt of all necessary regulatory, governmental or similar approvals, decisions and other acts by the competent authorities, including the competition authorities.
The collaboration with PMI and Swedish Match is expected, according to the same announcement, to create a comprehensive portfolio of alternative, non-combustible products worldwide, which will be supported by a leading research and development team for their scientific documentation.
It is also expected to help PMI enter directly and compete in the growing US non-combustible products market by further developing Swedish Match’s portfolio of oral nicotine products.
Jacek Olczak, CEO of Philip Morris International, said: “With the support of a strong strategic and economic framework, this agreement can create a global leader in alternative, non-combustible products – enhanced by complementary investment, commercial opportunities and product portfolios – while also leading to new product development platforms in the United States and internationally.
The staff and management of Swedish Match work consistently for a world without cigarettes, having already achieved very good results. We look forward to joining forces to accelerate this common path. “
It is noted that PMI’s goal is that by 2025 50% of its revenues come from alternative, non-combustible products. This percentage at the end of 2021 was 30%.