Philip Morris to buy lighter maker Cricket for $16 billion

Board members of Swedish Match approved the deal, it can be concluded until September 30th. Philip Morris will buy back the company's shares at a price

The American tobacco company Philip Morris will buy its European competitor Swedish Match for $16 billion. The board of directors of Swedish Match recommended that shareholders accept the offer.

Philip Morris will give back about $10.5 per share, which is 39% more than their price at the close of trading on May 9th. The terms of the conclusion of the contract are from 23 to 30 September.

Earlier media, including Fox Business and The Wall Street Journal, reported on the discussion of such a deal. On May 9, the companies confirmed that they were in talks.

Philip Morris banned from importing IQOS devices into the US Business

Philip Morris is one of the largest cigarette manufacturers in the world. It produces products under the brands Marlborom Parliament, Bond and others. The company also developed the IQOS tobacco heating system. Philip Morris has a market value of $155 billion, according to the WSJ.

The publication notes that Philip Morris is diversifying its product portfolio: by 2025, the company plans to receive more than half of its income from smoke-free products (in 2021, these product categories brought it 29% of net income - $ 31.4 billion).

At the end of March, Philip Morris announced that it was considering options for restructuring its business in RUSSIA due to "ongoing logistical difficulties and changes in the regulatory environment." The manufacturer stopped marketing activities, investments in Russian projects and the release of some goods in the country.

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Swedish Match manufactures mostly smokeless tobacco products (snus, chewing tobacco) as well as lighters under the Cricket brand. The WSJ writes that the company achieved double-digit sales growth in 2021, driven primarily by its U.S. smoke-free division.