Philip Morris International progresses toward sole ownership of Swedish Match, further supporting our ambition to deliver a smoke-free future

05 Dec 2022 · 4 min read
The acquisition of more than 93 percent of the shares in Swedish Match and its leading oral nicotine portfolio will enable us to provide access to a broader range of better alternatives for those adult smokers who would otherwise continue to smoke.
The view from the top of the PMI centre Lausanne, Switzerland.

Philip Morris International (PMI) has taken a major step to becoming the sole owner of leading oral nicotine company Swedish Match, in a move aimed at accelerating our smoke-free journey.

On November 28, Philip Morris Holland Holdings B.V.1, one of our affiliates, announced that it has acquired 93.11 percent of the shares in Swedish Match and intends to initiate a compulsory redemption of the remaining shares and request the delisting of Swedish Match from the stock market.

Jacek Olczak_thumb
We look forward to welcoming Swedish Match’s employees and leading oral nicotine portfolio into the PMI family to create a global smoke-free champion, notably bringing IQOS and ZYN together in both the U.S. and international markets.
Jacek Olczak, Chief Executive Officer, Philip Morris International

PMI and Swedish Match share a mutual vision of a smoke-free world, and a firm commitment to developing, scientifically substantiating, and responsibly commercializing smoke-free products that are a better alternative to cigarettes.

Swedish Match’s leading nicotine pouch product, ZYN, will bolster our growing smoke-free portfolio of heated tobacco products, e-vapor devices, and oral nicotine products.

This will put us in a significantly stronger position to meet the diverse range of taste, usage, technology, and price preferences among those adult smokers who would otherwise continue to smoke.

“We are delighted to have obtained over 90 percent ownership of Swedish Match, allowing us to initiate a minority redemption process to acquire the remaining shares outstanding and request the delisting of the company from the stock market,” said Jacek Olczak, Chief Executive Officer of PMI.

“This transaction marks a major milestone in accelerating our shared objective of a smoke-free future.

“We look forward to welcoming Swedish Match’s employees and leading oral nicotine portfolio into the PMI family to create a global smoke-free champion, notably bringing IQOS and ZYN together in both the U.S. and international markets.

“We are very excited about the growth, value creation, and progress in tobacco harm reduction that we believe can be achieved together over the coming years.”

Investing in the future

At PMI, our goal is to replace cigarettes with science-based, better alternatives to smoking as soon as possible.

By 2025, we aim to be a predominantly smoke-free company, with more than half of our total net revenues coming from our growing portfolio of smoke-free alternatives.

Since 2008, we have invested more than USD 9 billion in researching, developing, and commercializing smoke-free products, and have built world-class scientific assessment capabilities—notably in the areas of preclinical systems toxicology, clinical and behavioral research, as well as post-market studies.

Joint vision and purpose

Swedish Match has made huge strides in its relentless pursuit of tobacco harm reduction through its range of smoke-free products.

It has received authorizations for some of its products via strict regulatory pathways in the U.S., and reshaped the public health environment in countries such as Sweden and Norway.

As PMI continues to evolve its business for the long term, we believe the two companies represent a strong pairing focused on strategic vision, culture, and enterprise.

Together, the companies will be able to create a global, science-led smoke-free champion.

Combining our expertise in heated tobacco and oral nicotine—including multiple MRTP authorizations—as well as PMI’s emerging presence in e-vapor products, will enable us to switch more adult smokers to better alternatives than the two companies could achieve separately.

Developing our oral nicotine product offering to advance our smoke-free goals

Swedish Match will lead the combined company’s oral nicotine business, positioning PMI to:

  • Create a comprehensive smoke-free product portfolio globally, underpinned by a leading R&D engine for science, innovation, and growth through the companies’ complementary capabilities.
  • Directly enter and compete in the large, and growing, U.S. smoke-free market by:
  • Further supporting and developing Swedish Match’s oral nicotine portfolio in the U.S.
  • Leveraging Swedish Match’s substantial operational platform in the U.S. to unlock commercial opportunities across other smoke-free categories in the coming years.
  • Drive accelerated global expansion opportunities for Swedish Match’s oral nicotine products through PMI’s international commercial infrastructure and financial resources.

For more details on the announcement, read our full press release here.

Working together toward a smoke-free future

Our ambition is to reach as many adults who would otherwise continue to smoke as possible, providing them with a broad portfolio of smoke-free products to satisfy a diverse range of preferences.

This is an exciting step on our journey toward delivering a smoke-free future.

With the support of all key parties—from policymakers to the scientific community—we can help adults who don’t quit tobacco and nicotine altogether move away from cigarettes for good.

PMI and Swedish Match both believe that these adults deserve that opportunity—one that will benefit not only them, but public health, and wider society, too.

1 A Dutch private limited liability company (besloten vennootschap), with corporate registration number 20028955 and corporate seat in Bergen op Zoom, the Netherlands, indirectly wholly owned by PMI.