Philip Morris wins 83% stake in Swedish Match, goes forward with $16 billion takeover By Reuters

(Reuters) -Marlboro maker Philip Morris Worldwide (NYSE:) (PMI) stated on Monday it was going forward with its $16 billion plan to purchase Swedish Match regardless of successful settle for from house owners with not more than 82.59% of shares within the Swedish peer.

By Swedish regulation a bidder can solely provoke a obligatory redemption of remaining shares if voluntary acceptance is above 90%. PMI had stated earlier it might drop the bid if acceptance was decrease.

“This achievement of a excessive controlling stake ought to permit us to harness the strategic potential of the transaction, together with anticipated income synergies,” PMI Chief Government Officer Jacek Olczak stated in a press release.

PMI in Might made a suggestion to purchase Swedish Match for 106 crowns per share, valuing the corporate at $16 billion. In October it raised the bid to 116 crowns per share after some buyers stated it was too low.

“We sit up for welcoming Swedish Match’s workers and main oral nicotine portfolio into the PMI household,” the U.S. agency stated.

PMI stated it believed the ten largest shareholders of the Swedish group had accepted its bid and that the provide to purchase shares could be prolonged till Nov. 25 within the hope of additional elevating its stake.

“Our goal is to delist the shares of Swedish Match from the inventory market after reaching an possession of greater than 90%; we due to this fact encourage remaining retail and different institutional shareholders to tender within the prolonged time,” PMI stated.