Philip Morris International Becomes Majority Shareholder in Swedish Match

Philip Morris International to Buy Swedish Match for $16 Billion

Philip Morris Holland Holdings B.V. (PMHH), an affiliate of Philip Morris International (PMI), has become the majority shareholder of Swedish Match. This comes after PMHH made an offer to shareholders of Swedish Match AB in May 2022. On Nov. 7, 2022, PMHH declared the offer was unconditional and announced its plans to complete the offer and acquire all shares in Swedish Match that would be tendered in the offer. On Nov. 28, 2022, PMHH became the owner of 1,415,987,960 shares–the equivalent of 93.11 percent of the shares–in Swedish Match.

One major change that could take place due to PMI now being a majority share holder is how Swedish Match could be taken off the stock market.

“We are delighted to have obtained over 90% ownership of Swedish Match, allowing us to initiate a minority redemption process to acquire the remaining shares outstanding and request the delisting of the company from the stock market,” commented Jacek Olczak, CEO of PMI, in a press release.

He continued, “This transaction marks a major milestone in accelerating our shared objective of a smoke-free future. We look forward to welcoming Swedish Match’s employees and leading oral nicotine portfolio into the PMI family to create a global smoke-free champion, notably bringing IQOS and ZYN together in both the U.S. and international markets. We are very excited about the growth, value creation and progress in Tobacco Harm Reduction that we believe can be achieved together over the coming years. Despite the increased cost of financing over recent months, we expect the combination to be low single-digit accretive to PMI’s adjusted diluted EPS in 2023, before potential revenue synergies and excluding transaction-related and one-off costs and the amortization of acquired intangibles.”