Tuesday, May 17, 2022
Home Business Tobacco: Philip Morris International plans to buy Swedish Match

Tobacco: Philip Morris International plans to buy Swedish Match

Will the American company Philip Morris International (PMI) continue to grow? PMI, which seeks to develop outside of cigarettes, is currently negotiating the possible takeover of the Swedish group Swedish Match, a specialist in tobacco and nicotine in pouches to be placed under the lip, the two groups indicated on Monday, May 9. “Discussions are ongoing and it is not certain that an offer will be made”, however warns PMI in a press release, while Swedish Match underlines, in a separate document, that there is no certainty on “ the terms of any offer”. The two groups thus confirm the existence of talks initially reported by the Wall Street Journal, according to which PMI could disburse up to 15 billion dollars. PMI, parent company of the Marlboro, Chesterfield or L&M brands distributed outside the United States, has been seeking for several years to diversify its activities into alternatives that are potentially less dangerous to health than cigarettes, such as heated tobacco consumed without combustion and without paper.

Towards a diversification of its activities

In the same vein, the New York-based company took control of the British manufacturer of medical inhalers Vectura in September. Beyond pockets of nicotine or tobacco to place on the gum, Swedish Match also sells chewing tobacco, snuff, cigars, matches and lighters, mainly in the United States and Scandinavian countries. On Wall Street, PMI shares rose 2.5% on Monday in a sharply declining market at the end of the session, valuing the group at around 157 billion dollars. That of Swedish Match dropped 0.58% on the Stockholm Stock Exchange, where the company is valued at around 119 billion Swedish crowns (around 12 billion dollars).

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