Philip Morris to buy Swedish Match for $16 billion

NEW YORK, May 14, (AP): Philip Morris will attempt to step further into the smoke-free tobacco market, offering to buy the chewing tobacco company Swedish Match for about $16 billion in cash.

Philip Morris is offering $10.62 (106 Swedish krona) for each share of Swedish Match, a premium of about 39% to its closing price Monday before the potential deal was first reported in The Wall Street Journal.

Swedish Match, based in Stockholm, makes nicotine pouches, chewing tobacco and moist snuff, among other products. It derives more than 65% of its sales from smoke-free products, with most taking place in the U.S. and Scandinavia.