Philip Morris International, known for its iconic brand of Marlboro cigarettes which it markets outside the United States, is ready to pull out the checkbook. In a press release published on Monday, May 9, the American giant confirmed that it was in discussions with the Swedish tobacco group Swedish Match with a view to an acquisition, while stressing that the outcome of the negotiations was not certain. He would be ready to pay the equivalent of 15 billion dollars (14.2 billion euros) to seize the specialist in “snus”, a moist tobacco powder placed between the gum and the upper lip and consumed mainly in northern European countries.
Swedish Match has also developed tobacco-free nicotine pouches sold under the Zyn brand, an activity that is experiencing rapid growth in its home market, Scandinavia, but also in the United States. The ‘smoke-free products’ specialist’s stock soared at the opening of trading on Tuesday (May 10th) and immediately jumped almost 25%, trading at the level of the offer of Philip Morris, as than estimated by the markets.
This acquisition, if confirmed, is part of the strategic shift negotiated by Philip Morris. The company, world leader in tobacco, was born in 2008 from a split between, on the one hand, Altria, carrying the cowboy brand in the United States, and on the other, Philip Morris International, in charge of the market outside the United States. In the summer of 2019, the two companies unveiled a merger project, ready to redo what they had undone. The ace. A month after the publication of the banns, the marriage announced with great fanfare went up in smoke.
17.9 million users
Since then, Philip Morris has accelerated its diversification policy. A way of reacting to the decline in the consumption of traditional cigarettes in many Western countries, prompted by public policies aimed at protecting the health of citizens. The group first promoted its in-house developed Iqos vaping product, saying that in this case the tobacco is heated but not burned. It claims 17.9 million users spread over its various markets and wishes to develop its marketing in the United States.
To increase the share of so-called “smokeless” products, the firm has set its sights on two companies in 2021. It first took over Fertin Pharma, a pharmaceutical laboratory which offers substitute products for cigarettes, such as chewing gum, gum or powder, for 820 million dollars (690 million euros).
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