Philip Morris Set to Acquire Swedish Match for $16bn

Marlboro-manufacturer Philip Morris International has offered $16 billion to take over Stockholm-based Swedish Match, the maker of some of our bestselling brands, including ZYN nicotine pouches and General snus. The company seeks to acquire Swedish Match to expand its portfolio beyond cigarettes to meet the rapidly increasing demand for smokeless alternatives and achieve its goal of delivering a smoke-free future.

A Shared Vision for a Smoke-Free Future

In the recent offer announcement webcast, PMI's CEO, Jacek Olczak, stated that the offer aims "to join two leading smoke-free players to create a global champion."

"We are tremendously excited by the prospect of Swedish Match becoming a member of the PMI group and a future together as one organization driving towards an aligned smoke-free goal," Olzack added.

PMI's Strong Interest in ZYN and the U.S. Market

Mutual interests, aligned visions, and shared goals aside, a key reason for PMI's desire to take over Swedish Match is access to its ZYN nicotine pouches brand. PMI recognizes ZYN's high performance, number one status, and "substantial operation platform" in the U.S. and seeks to support its growth and development.

Fast-Paced Deal-Making

The deal has been moving fast. On the 9th of May, Swedish Match addressed the speculation and confirmed discussions of a possible PMI takeover, stating that they were "ongoing," but there was "no certainty" of an offer from PMI. Just two days later, on the 11th of May, Swedish Match put out another press release detailing the Board of Directors' evaluation of the offer, which concluded that Swedish Match's shareholders should accept it. The acceptance period of the offer is expected to begin on or near the 23rd of June 2022. So, providing things go well, the PMI-Swedish Match takeover could be imminent.

What Does This Mean for Swedish Match and Its Snus?

Many snusers are concerned about what will happen to the 107-year-old company and its legendary products, some of which are as old or even older than Swedish Match itself, such as Göteborgs Rapé and Ettan. The good news is that PMI does not plan to make any material changes to the company's operations. So, in theory, consumers should notice no difference in quality, taste, or feel in the Swedish Match products that they enjoy.