Philip Morris International is in talks to Acquire Swedish Match

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Philip Morris International is in talks to Acquire Swedish Match
10 May 2022
6 min read

News Synopsis

Philip Morris International Inc. is in preliminary talks to acquire Swedish Match AB in a deal that could be worth more than $15 billion and is growing rapidly for smoke-free brands. 

Negotiations between US-based Philip Morris and Stockholm-based Swedish Match could lead to an agreement as early as this week, people said, warning that negotiations could still stagnate. No confirmation on conditions and outline of the transaction have been made yet.

The Swedish Match was valued at around 117 billion Swedish krona, or about $12 billion. A regular premium is worth over $15 billion. The market value of Philip Morris is about $155 billion.

The history of Philip Morris International dates back to 2008 when Altria decided to spin off its international tobacco business from Philip Morris USA, giving investors direct access to its fast-growing overseas business. Philip Morris International sells Marlboro cigarettes and brands such as Chesterfield, L&M, Lark and Philip Morris outside the United States and is one of the largest tobacco companies in the world.

Philip Morris is the most aggressive when it comes to focusing on tobacco products. The company aims to generate more than 50% of net sales from smokeless products by 2025. Last year, the company's IQOS device-led smokeless portfolio accounted for about 29% of net sales, or $31.4 billion, because it heats cigarettes instead of burning them.

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