Philip Morris Wins Elliott Backing For $16bn Swedish Match Takeover: Report

By Dayeeta Das
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Philip Morris Wins Elliott Backing For $16bn Swedish Match Takeover: Report

Activist investor Elliott Management Corp has decided to back Marlboro-maker Philip Morris International's (PMI) $16 billion (€16.03 billion) offer for Swedish Match, the Financial Times reported on Sunday.

Elliott has tendered its shares in the Swedish target, the FT said, bringing PMI closer to the 90% threshold required for forced redemption of remaining minority stakeholders.

Shareholder Acceptance

PMI's offer had received more than 80% shareholder acceptance at the latest count on Friday and more could be processed on Monday, the FT reported, citing sources familiar with the matter.

The deadline for shareholders to tender shares expired on Friday at 16:00 GMT.

US investor Elliott, PMI and Swedish Match declined to comment.


Elliott has been building its stake in Swedish Match for months, reaching more than 10% in October. Bloomberg News reported in July, that Elliott was building a stake but was opposed to a PMI deal at the original offer of SEK 106 ($9.73) per share.

Philip Morris' Bid

PMI launched its bid for the maker of tobacco and oral nicotine products in May before raising the offer to SEK 116 last month after Swedish Match shares consistently traded above the original bid price.

United States-based PMI does not currently trade in its home market, but Swedish Match has been expanding fast in America.

Swedish Match controls about half the world's market for snus - a moist, smoke-free snuff - but one of its fastest-growing products is its tobacco-free 'ZYN' nicotine pouches.

News by Reuters, edited by ESM. For more A-Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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