By Dominic Chopping

Philip Morris International Inc. said Monday that it is moving ahead to complete its $16 billion acquisition of tobacco company Swedish Match AB despite failing to reach the planned level of shareholder support.

The U.S. maker of Marlboro cigarettes said investors holding 82.6% of Swedish Match shares have accepted the deal--including the top 10 shareholders--and although this is short of the 90% target, it has decided to move ahead and complete the acquisition.

"We are today extending the acceptance period until November 25 to allow those shareholders who have not tendered...additional time to accept the offer, while waiving the 90% acceptance condition to provide certainty to those shareholders who have already tendered," Chief Executive Jacek Olczak said.

Philip Morris plans to delist Swedish Match shares after reaching an ownership of more than 90%.

The acquisition gives Philip Morris access to Swedish Match's smokeless tobacco portfolio which counts the U.S. as its largest market and holds large market share positions with it's nicotine pouch and chewing tobacco products.

Philip Morris offered 106 Swedish kronor ($9.71) a share for the company in May but came back with an improved final bid of SEK116 last month.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

November 07, 2022 06:19 ET (11:19 GMT)

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