Philip Morris International has agreed to buy tobacco and nicotine company Swedish Match for $ 16 billion to reduce its dependence on cigarettes.
In a bet on the rapidly changing markets for cigarette alternatives, Philip Morris said it had made a cash bid for the Stockholm-based group at SEK 16 per share, valued at SEK 161.2 billion ($ 16 billion).
Swedish Match shares rise 9% to a record 103.30 kroner.
The Swedish company abandoned its cigarette business in 1999 and wants to separate these activities from its assets, in a move that would mean a complete exit from tobacco products.
Philip Morris’ goal is for tobacco-free products to account for more than half of sales by 2025.
Source: Capital
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