Philip Morris International has announced talks to take control of Swedish Match as the Marlboro cigarette maker seeks to expand its smoke-free product options amid heightened scrutiny of the sale of conventional cigarettes.
The data indicates that talks are currently underway between the two companies, but a suitable offer has not been reached yet, but the news pushed Philip Morris stock up 1.6 percent to $100.53.
Swedish Match has a market capitalization of 120.92 billion Swedish kronor ($12.04 billion) based on the last closed price of its stock, while the giant Philip Morris has a market capitalization of around $153.37 billion.
Last year, Philip Morris bought asthma inhaler maker Victora for $1.44 billion as part of its long-term plan to develop smoke-free products and transform into a “health and wellness” company. Read more [Philip Morris Cigarettes buys a respiratory pharmaceutical company].
Swedish Match manufactures a type of tobacco called wet tobacco, which is banned in all European Union countries except Sweden. The company’s business has grown in the American cigar market over the past years, and Philip hopes to achieve similar success there with wet tobacco, which faces fierce competition. in his local market. Read more [Tobacco stocks fall after the Biden administration’s scheme to reduce nicotine levels in cigarettes].
Talks between the Marlboro maker and Swedish Match could result in a final deal by the end of this week, according to the Wall Street Journal, and Swedish Match has postponed plans to split and float its U.S. cigars business on the stock exchange.