Philip Morris to buy Swedish Match for $16 billion

May 10, 2022, 6:16 PM | Updated: May 12, 2022, 1:15 pm

EDITORS PLEASE KILL AP PHOTO VARIT501 SLUGGED PHILIP MORRIS SWEDISH MATCH. THE PHOTO IS OF PHILIP MORRIS USA AND NOT PHILIP MORRIS INTERNATIONAL. - FILE - In this November 2003 file photo is the reflecting pool in front of the Philip Morris USA headquarters in Richmond, Va. Philip Morris said Wednesday, May 11, 2022, it’s expanding further in the smoke-free segment of the tobacco market with an offer to buy Swedish Match for about $16 billion in cash. Swedish Match, based in Stockholm, makes nicotine pouches, chewing tobacco and moist snuff, among other items. It derives more than 65% of its sales from smoke-free products, with most sales in the U.S. and Scandinavia. Philip Morris, which said it derived all of its revenue in 2015 from cigarettes, aims to be predominantly smoke-free by 2025. (P. Kevin Morley/Richmond Times-Dispatch via AP)

(P. Kevin Morley/Richmond Times-Dispatch via AP)

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.


Associated Press

UK schedules hearing for US woman in teen’s road death case

LONDON (AP) — A court case against an American citizen who left Britain after being involved in a crash that killed a teenage motorcyclist more than three years ago will be heard this week, U.K. prosecutors said Monday. The Crown Prosecution Service said there will be a hearing in the case against Anne Sacoolas at […]
1 day ago
FILE - Dutch crime reporter Peter R. de Vries looks on, prior to attending a live TV show in Amster...
Associated Press

Suspect detained in Poland in Dutch reporter’s slaying

THE HAGUE, Netherlands (AP) — Dutch prosecutors said Monday that a 30-year-old man suspected of involvement in the slaying of crime reporter Peter R. de Vries has been arrested by authorities in Poland. De Vries, one of the Netherlands’ best-known journalists who also campaigned to solve cold cases, was gunned down in Amsterdam on July […]
1 day ago
FILE - President of European Central Bank Christine Lagarde speaks during a press conference follow...
Associated Press

Europe’s outlook “darkening, ECB head hedges on recession

FRANKFURT, Germany (AP) — The head of the European Central Bank said Monday that the economic outlook “is darkening” and she expects business activity to “slow substantially” in the coming months as high energy and food prices pushed up by the war in Ukraine sap consumer spending power. ECB President Christine Lagarde hedged her remarks […]
1 day ago
Associated Press

Boy pulled from lake after aunt allegedly pushed him dies

CHICAGO (AP) — A 3-year-old boy who was allegedly pushed into Lake Michigan in Chicago by his aunt last week has died, officials said. Josiah Brown, who had been in grave condition and was not expected to survive since he was pulled from the lake last Monday, was pronounced dead shortly after 10 a.m. Sunday, […]
1 day ago
FILE - French President Emmanuel Macron and Finance Minister Bruno Le Maire, left, listen to explan...
Associated Press

France forecasts weak growth next year amid energy crisis

PARIS (AP) — France forecasts growth to slow down substantially next year in the EU’s second-biggest economy, amid fears of a recession in neighboring Germany as the economic situation in Europe is slammed by the impact of Russia’s war in Ukraine. France’s budget, presented Monday in a Cabinet meeting, is based on an predicted growth […]
1 day ago
President Joe Biden speaks about the DISCLOSE Act in the Roosevelt Room of the White House in Washi...
Associated Press

White House: New rule will show ‘true cost’ of plane tickets

WASHINGTON (AP) — President Joe Biden will announce a new initiative Monday that will eventually allow consumers to see a more complete price on airline tickets — including baggage and change fees — before they buy, as the White House continues to search for ways to lower costs for Americans amid persistently high inflation. The […]
1 day ago

Sponsored Articles

Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Work at Zum Services...

Seattle Public Schools announces three-year contract with Zum

Seattle Public Schools just announced a three-year contract with a brand-new company to the Pacific Northwest to assist with their student transportation: Zum.
Swedish Cyberknife 900x506...

June is Men’s Health Month: Here’s Why It’s Important To Speak About Your Health

According to the Centers for Disease Control and Prevention, men in the United States, on average, die five years earlier than women.

Anacortes – A Must Visit Summertime Destination

While Anacortes is certainly on the way to the San Juan Islands (SJI), it is not just a destination to get to the ferry… Anacortes is a destination in and of itself!

Ready for your 2022 Alaskan Adventure with Celebrity Cruises?

Celebrity Cruises SPONSORED — A round-trip Alaska cruise from Seattle is an amazing treat for you and a loved one. Not only are you able to see and explore some of the most incredible and visually appealing natural sights on the planet, but you’re also able to relax and re-energize while aboard a luxury cruise […]
Philip Morris to buy Swedish Match for $16 billion