STOCKHOLM (Reuters) – Marlboro-maker Philip Morris International Inc said on Wednesday it was making a recommended cash offer to buy Swedish tobacco and nicotine products maker Swedish Match for 106 Swedish crowns per share.
The offer value for the Stockholm-listed company amounted to approximately 161.2 billion Swedish crowns ($16 billion), the company said in a statement.
Swedish Match’ shares leapt to a record high on Tuesday after Philip Morris International confirmed media reports it was in talks to buy it in a bet on the fast-growing market for cigarette alternatives.
It makes most of its profit from Swedish-style snuff called “snus”, but sales of its Zyn tobacco-free nicotine pouches are growing rapidly in Scandinavia and the United States.
The Swedish Match board said in a separate statement it believed “the terms of the offer recognise Swedish Match’s long-term growth prospects, taking into account the risks associated with the realisation of those prospects”.
($1 = 10.0381 Swedish crowns)
(Reporting by Niklas Pollard and Anna Ringstrom; editing by Niklas Pollard)
