American tobacco giant Philip Morris secures $16 billion Swedish Match deal

American tobacco giant Philip Morris secures $16 billion Swedish Match deal
Image of Marlboro cigarettes on an airport shelf. Credit: GagliardiPhotography/

A $16 billion deal to take over Swedish Match has been secured by the American tobacco giant Philip Morris.

American tobacco giant Philip Morris International Inc. announced on Monday, November 7, that a proposed takeover of Swedish Match AB, the nicotine pouch maker, will be going ahead.

After securing support enough from shareholders, including its largest, Elliott Investment Management LP, the $16 billion takeover has been given the green light. The company had needed 90 per cent support from its shareholders and there had been doubt surrounding Elliott’s backing of the transaction.

With 83 per cent of the shareholders backing the deal, in order to give the remaining investors time to agree to the offer, Philip Morris reportedly waived the acceptance level, according to

The Marlboro cigarette manufacturer has set itself the goal of making half of its revenue by 2025 from alternative smoking products. This latest deal should allow the company to accelerate this target.

Swedish Match is a big player in the alternative smoking products market. It is involved in the manufacture and distribution of heated tobacco, nicotine pouches, and vaping devices. With a massive US distribution network, it is thought that this will help Philip Morris gain a foothold in this lucrative market.

A battle could now be on the cards with Altria Inc. – who used to be PMI’s sister company – and are also huge in the smoking substitutes field. Last month, to offer smokers alternatives to cigarettes, they formed an international alliance with Japan Tobacco International.

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