Philip Morris in talks to steal smaller rival Swedish Match

© Reuters. FILE PHOTO: The firm’s logo is seen procedure the Philip Morris Izhora manufacturing facility outside Saint Petersburg, Russia April 9, 2022. REUTERS/REUTERS PHOTOGRAPHER

(Reuters) -Philip Morris Global Inc is in talks to steal rival Swedish Match AB, the companies stated on Monday, as the Marlboro maker seems to manufacture larger its smoke-free options amid rising world scrutiny on the sale of worn cigarettes.

The talks between the companies had been in growth, nonetheless it used to be unsure whether or now not a proposal shall be made, Philip Morris (NYSE:) stated in a separate commentary. Shares of the firm had been up 1.6% at $100.53.

Swedish Match had a market capitalization of 120.92 billion Swedish krona ($12.04 billion), as of final cease, in step with Refinitiv files. Philip Morris had a market capitalization of $153.37 billion.

Final 365 days, Philip Morris equipped asthma inhaler maker Vectura for $1.44 billion as phase of its long-term opinion to develop smoke-free products and swap to being a “broader healthcare and wellness” firm.

The U.S. Food and Drug Administration in April issued a protracted-awaited proposal to ban flavored cigars and menthol cigarettes, which legend for more than a third of the alternate’s overall market half in the US.

Swedish Match makes snus, a moist snuff product that is banned in all European Union nations other than Sweden. The firm has grown in the U.S. cigar market in most fresh years and hopes for the same success there with snus, which faces competition in its house market.

The talks between the Marlboro maker and Swedish Match may yield a deal as soon as this week, the Wall Boulevard Journal first reported the news earlier on Monday, citing of us conscious of the topic.

Swedish Match in March shelved plans to plug off and checklist its U.S. cigar alternate.

($1 = 10.0472 Swedish crowns)