Philip Morris International has raised its offer for ‘Swedish Match’ by almost 10% in a last-ditch effort to complete the takeover of the smokeless tobacco specialist that produces snus, a popular tobacco product, as well as oral nicotine pouches, the fastest-growing alternative nicotine category. PMI increased its offer from SKr106 to SKr116 per share, valuing the target’s equity at about SKr176bn ($15.7bn). The latest offer represents a victory for a group of hedge funds led by Elliott Management that have built stakes in Swedish Match since the initial offer: Elliott is now the company’s biggest shareholder (7.25%). In order to complete the transaction, PMI needs to secure approval from Swedish Match shareholders holding at least 90% of the stock, by November 4. Swedish Match produces snus, a popular tobacco product, as well as oral nicotine pouches, the fastest-growing alternative nicotine category. For PMI, the Swedish Match deal would unlock a critical entry point into the US market for smoke-free nicotine products. In response to the renewed bid, Swedish Match’s shares were up 1.9% to SKr112.4
