Philip Morris confirms deal talks with Swedish Match, and stock rallies

philip-morris-confirms-deal-talks-with-swedish-match,-and-stock-rallies

Shares of Philip Morris International Inc. PM, +1.62% rallied 1.6% in midday trading Monday, after the cigarette and smokeless tobacco giant confirmed that it was in talks with Swedish Match AB SWMAY, +20.73% SWMA, -0.58% regarding a potential buyout bid. “The discussions are in progress and it is uncertain whether an offer will be made,” Philip Morris said in a statement. “PMI intends to make no further comment regarding the discussions unless and until it is appropriate to do so.” Swedish Match’s U.S.-listed shares, which are traded over the counter, shot up 20.1% toward the highest close since Oct. 23, 2021. Earlier, The Wall Street Journal reported that the companies were in talks about a deal that could be valued at about $15 billion, and be announced as early as this week. Year to date, Philip Morris’ stock has tacked on 5.8% and Swedish Match shares have advanced 15.0%, while the S&P 500 SPX, -2.54% has declined 15.5%.

Source: Marketwatch

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