© Reuters. FILE PHOTO: The Philip Morris logo is painted on a factory in Serrieres near Neuchatel, Switzerland December 8, 2017. REUTERS / Denis Balibouse / File Photo
By Marie Mannes and Richa Naidu
GDANSK/LONDON (Reuters) – Philip Morris is not considering withdrawing his offer for the Sweden match despite deteriorating global economic conditions and “options on the table” including holding a majority stake section, its CEO told Reuters.
Marlboro maker Philip Morris (NYSE:) in May offered to acquire the Stockholm-based company to bet on the rapidly growing market for tobacco alternatives.
Under Swedish law, 90% of Match Sweden’s shareholders need to approve the offer by October 21, but some have come out against the $16 billion – or SEK 106 per share – bid for one of the world’s largest manufacturers of oral nicotine products.
Philip Morris CEO Jacek Olczak told Reuters he believes the offer is “even more attractive” given the changed global macroeconomic environment compared to the original bid.
When asked if he would consider withdrawing Philip Morris’ offer, Olczak said: “No – what I’m saying is an existing offer – SEK 106 (per share) with 90% accepted. , etc – is a good offer.” ”
He said becoming a major shareholder of the Swedish match is one of many options if it doesn’t cross the 90% threshold.
Swiss Match controls about half of the world’s market for snus – a Swedish-style inhaler that’s moisture-free and smokeless, according to Euromonitor International. The company is also a global industry leader in nicotine bags.
Earlier this month, Elliott Investment Management said the stake it has built up in Match Sweden since PMI’s offering has reached 5.25%, making it one of the largest shareholders.
Bloomberg reported in July.
Olczak said he regularly meets with investors from both companies, but declined to be identified.
“I just say on a regular basis, we’re talking to investors,” he said.
He declined to comment on whether Philip Morris would increase the offer.
