Philip Morris International Inc. (NYSE:PM) is poised to purchase sub-labial tobacco stalwart Swedish Match AB (OTCPK:SWMAY), per a statement from the latter company.
The Stockholm-based tobacco company that traces its lineage back to “match king” Ivar Kreuger is a leader in snus, a smokeless tobacco product that has long been popular across the Nordic countries. In recent years, the product has grown significantly in the US alongside nicotine pouches and other smokeless options.
According to Statista, snus sales have grown from under $10 million in 2008 to about $180 million in 2020. Such a growth trajectory dovetails well with Philip Morris’ (PM) stated goal of phasing out combustible tobacco products.
“Our ambition to become a majority smoke-free business by net revenues in 2025 remains intact,” CEO Jacek Olczak said in the company’s April 25 earnings call. “We remain confident in the rapid pace of our transformation.”
The confirmation of talks by Swedish Match (OTCPK:SWMAY) comes in response to a Wall Street Journal report that suggested an up-to $15 billion deal was imminent.
“There can be no certainty that an offer will be made, nor as to the terms of any such potential offer,” the firm said in a statement, casting doubt upon a potential price.
Shares of the Stamford-based tobacco giant gained 1.7% shortly after the statement was released.
Swedish Match (OTCPK:SWMAY) has been rumored as a takeover target since late 2021.