Phillip Morris International, one of the world's largest tobacco companies, wants to buy Swedish snus manufacturer Swedish Match. Several major news outlets report this.
According to Bloomberg and the Wall Street Journal, Phillip Morris and Swedish Match are in intense negotiations and PMI may very well make an offer for the Swedish snus manufacturer already this week.
Going smoke-free
Phillip Morris International (PMI) has invested heavily in smokeless nicotine products in recent years. As Vejpkollen previously reported PMI aims to capture 50% of sales through e-cigarettes, the IQOS heat-not-burn system and oral products such as snus and nicotine pouches by 2025. The goal is to become a 'smoke-free company' and stop selling cigarettes (e.g. Marlborogh) altogether.
"A purchase of Swedish Match would be a step towards that goal. It would give PMI great opportunities to broaden the distribution of not only snus but also other of their smokeless products" notes the online magazine Bloomberg analysts.
Rumors of purchase in the past
It has previously rumored that PMI was close to buying Swedish Match. The last time negotiations took place was in 2010, but the talks did not go all the way. This time too, unconfirmed sources are behind the information. At the same time, Swedish Match has confirmed that negotiations are ongoing.
Snus counteracts smoking
Swedish snus, one of the few nicotine products to achieve the status of "harm reduction nicotine product" in the U.S., is considered by many to be a key reason why so few Swedes smoke (6%), compared to other countries within the EU (23%). Snus is banned from sale in all EU countries except Sweden.
