Philip Morris International Inc. raised its offer for Swedish Match by 9.4% and has agreed to pay $2.7 billion to regain the U.S. rights for its IQOS heated tobacco products from Altria Group
MO,
Philip Morris
PM,
said it is now offering 116 Swedish kronor, equivalent to $10.34, for each Swedish Match
SWMA,
share, up from the original offer in May of 106 Swedish kronor. The total value of that deal, though in dollar terms, is roughly unchanged from the original offer because the appreciation in the U.S. currency against the Swedish krona, made it easier for the company to raise its offer.
The current bid values Stockholm-based Swedish Match at 176.4 billion Swedish kronor, or $15.7 billion. That is roughly in line with the initial bid’s $16 billion dollar value.
Philip Morris also said inflation, volatility in equity markets and changes in interest rates played a role in determining the new offer price. The Wall Street Journal previously reported that this was expected.
