Philip Morris to buy Swedish Match for $16 billion

May 11, 2022, 6:16 AM | Updated: May 12, 2022, 1:31 pm

NEW YORK (AP) — Philip Morris will attempt to step further into the smoke-free tobacco market, offering to buy the chewing tobacco company Swedish Match for about $16 billion in cash.

Philip Morris is offering $10.62 (106 Swedish krona) for each share of Swedish Match, a premium of about 39% to its closing price Monday before the potential deal was first reported in The Wall Street Journal.

Swedish Match, based in Stockholm, makes nicotine pouches, chewing tobacco and moist snuff, among other products. It derives more than 65% of its sales from smoke-free products, with most taking place in the U.S. and Scandinavia.

As recently as 2015, all of Philip Morris’ revenue came from cigarettes. By last year, however, the New York company said that about 30% of its revenue came from smoke-free products. It sells Marlboro cigarettes outside the U.S. while its former parent, Altria, sells the product domestically.

Philip Morris’ goal is to be predominantly smoke-free by 2025.

“Underpinned by compelling strategic and financial rationale, this combination would create a global smoke-free champion–strengthened by complementary geographic footprints, commercial capabilities and product portfolios–and open up significant platforms for growth in the U.S. and internationally,” said CEO Jacek Olczak.

The offer is subject to approval by Swedish Match shareholders and other conditions.

In premarket trading, shares of Philip Morris International Inc. edged up 1% to $99.87.


This story has been updated to remove a photo of Philip Morris USA, which is not affiliated with Philip Morris International.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


(Pixabay Photo)...

Associated Press

Oath Keeper from Arizona sentenced for role in Jan. 6 riot at US Capitol

Edward Vallejo, a U.S. Army veteran from Phoenix, oversaw a “Quick Reaction Force” at a Virginia hotel that was prepared to deploy an arsenal of weapons into Washington if needed, authorities say.

1 day ago

FILE - U.S. Border Patrol Chief Raul Ortiz listens during a news conference, Jan. 5, 2023, in Washi...

Associated Press

US Border Patrol chief is retiring after seeing through end of Title 42 immigration restrictions

The head of the U.S. Border Patrol announced Tuesday that he was retiring, after seeing through a major policy shift that seeks to clamp down on illegal crossings at the U.S.-Mexico border following the end of Title 42 pandemic restrictions.

2 days ago

FILE - President Joe Biden talks with House Speaker Kevin McCarthy of Calif., on the House steps as...

Associated Press

House OKs debt ceiling bill to avoid default, sends Biden-McCarthy deal to Senate

The House approved a debt ceiling and budget cuts package late Wednesday, as President Joe Biden and Speaker Kevin McCarthy assembled a bipartisan coalition of centrist Democrats and Republicans against fierce conservative blowback and progressive dissent.

2 days ago

Sean Bickings (Family Photo via city of Tempe)...

Associated Press

Family of man who drowned last year in Tempe Town Lake files wrongful death lawsuit

The family of a man who drowned in Tempe Town Lake a year ago filed a wrongful death lawsuit against the city Wednesday, noting that its police department doesn't have a policy requiring officers to go into the water to save someone.

2 days ago

(Mike Stocker/South Florida Sun-Sentinel via AP)Credit: ASSOCIATED PRESS...

Associated Press

Florida police search for 3 gunmen who wounded 9 at crowded beach on Memorial Day

Police are responding to a shooting near the beach broadwalk in Hollywood, Florida.

4 days ago

Crew members assemble the main stage ahead of the 2023 Scripps Nations Spelling Bee on Sunday, May ...

Associated Press

Exclusive secrets of the National Spelling Bee: Picking the words to identify a champion

As the final pre-competition meeting of the Scripps National Spelling Bee's word selection panel stretches into its seventh hour, the pronouncers no longer seem to care.

4 days ago

Sponsored Articles



Thank you to Al McCoy for 51 years as voice of the Phoenix Suns

Sanderson Ford wants to share its thanks to Al McCoy for the impact he made in the Valley for more than a half-decade.



Why drug-free weight loss still matters

Wanting to lose weight is a common goal for many people as they progress throughout life, but choosing between a holistic approach or to take medicine can be a tough decision.


OCD & Anxiety Treatment Center

How to identify the symptoms of 3 common anxiety disorders

Living with an anxiety disorder can be debilitating and cause significant stress for those who suffer from the condition.

Philip Morris to buy Swedish Match for $16 billion