Elliott Investment opposes Swedish Match's acquisition by Philip Morris International

Jul.11.2022
Elliott Investment opposes Swedish Match's acquisition by Philip Morris International
Elliott Investment Management is opposing the sale of Swedish Match AB to Philip Morris for $16 billion.

According to sources familiar with the matter, Elliott Investment Management is building a stake in Swedish Match AB. Swedish Match AB is a smokeless tobacco company that has agreed to be sold to Philip Morris International for $16 billion.


According to insiders, a US activist investor is reportedly planning to oppose the current terms of the deal and has requested that their identity remains confidential. Swedish Match had previously agreed in May to be acquired by PhiMo International.


A representative of Elliott declined to comment. Representatives from Swedish Match and Fempro International were unable to be reached for immediate comment.


On Friday, the stock price of Swedish Match increased by 1.7%, causing the company's market value to reach 161.3 billion kronor ($15.2 billion).


This transaction is subject to many conditions, including Fimo International acquiring over 90% of Swedish Match's shares through a bid, unless it chooses to waive this condition. At the end of last year, AstraZeneca Plc withheld 8% of Biovitrum AB's shares from its acquisition by Advent International and Singapore's GIC Pte, effectively preventing the purchase for $7.6 billion, highlighting the impact of opposition from major shareholders.


Freeze shares.


According to analyst Mads Rosendal of Danske Bank A/S, it is unlikely that Elliott will be able to acquire a large enough stake in Swedish Match to single-handedly block the deal.


In a research report on Friday, he wrote, "Even if they successfully block this transaction, it may not be detrimental to Swedish Match's profitability.


According to Rosendal, if the original agreement is reached, Swedish Match would be better off from a financial and credit rating perspective, but would suffer damage in terms of environmental, social, and governance considerations.


The Swedish Match deal is one of the biggest transactions this year, pushing FeiMo International into the fiercely competitive market for oral nicotine products, many of which are very different from traditional chewing tobacco.


Swedish Match is a prominent manufacturer of snuff, a tobacco product that users place between their upper lip and gum. It is popular in Sweden but banned in other parts of Europe. The company also produces nicotine pouches known as ZYN.


In recent years, Elliot Management Corporation, run by billionaire Paul Singer, has been concerned with the changes taking place in some of the world's largest and most well-known companies, including Twitter, Canadian National Railway and American multinational conglomerate AT&T. In Europe, the company last year drove the transformation of pharmaceutical firm GSK Plc and energy company SSE Plc.


I'm sorry, as an AI language model, I already operate and communicate in standard journalistic English. If you have a specific sentence or text that you want me to translate, please provide it.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

FDA Posts Environmental Assessment for Nicotine Pouches, May Influence Future PMTA Reviews
FDA Posts Environmental Assessment for Nicotine Pouches, May Influence Future PMTA Reviews
The U.S. Food and Drug Administration released a programmatic environmental assessment covering nicotine pouches and other oral nicotine products, concluding that their overall environmental impact is generally minimal.
Regulations
May.22
 NYT: Reynolds American Donated $5 Million Before FDA Vape Policy Shift
NYT: Reynolds American Donated $5 Million Before FDA Vape Policy Shift
According to The New York Times, Reynolds American donated $5 million to a Trump-backed super PAC shortly before the FDA introduced a new policy that could benefit major tobacco companies seeking to sell flavored vaping products.
News
May.21
FDA Tobacco Center Pushes Review-Efficiency Statement After Commissioner’s Exit
FDA Tobacco Center Pushes Review-Efficiency Statement After Commissioner’s Exit
FDA CTP issued a May 7 statement on accelerating product review and improving PMTA efficiency, but did not push it via official X and newsletter until May 13, one day after FDA Commissioner Marty Makary’s resignation was confirmed. FDA has not explained the delay, and no public evidence links it directly to the leadership change. The timing is notable given CTP’s usual 24-hour distribution practice.
Special Report
May.14
One Year After UK Disposable Vape Ban: Youth Use Falls to 13%, Adult Use to 8%
One Year After UK Disposable Vape Ban: Youth Use Falls to 13%, Adult Use to 8%
among both youth and adults. However, industry groups and regulators warn that the illicit vape market remains a growing concern.
Jun.09
Special Report | China’s Tobacco Tax Debate Shifts Toward Tax Design as Policy Trade-offs Come Into Focus
Special Report | China’s Tobacco Tax Debate Shifts Toward Tax Design as Policy Trade-offs Come Into Focus
China’s tobacco tax debate is moving from whether to raise prices to how the tax system should be designed. At a Beijing forum on World No Tobacco Day, experts discussed higher specific excise taxes, minimum tax burdens and dynamic adjustments linked to income and inflation. The issue also connects to China’s broader consumption tax reform, health financing and chronic disease costs. Public reports did not mention e-cigarettes, heated tobacco, nicotine pouches or other new nicotine products.
Jun.11
Capital Group Takes 5.61% Stake in KT&G, Joining Major Foreign Shareholders
Capital Group Takes 5.61% Stake in KT&G, Joining Major Foreign Shareholders
KT&G disclosed in a regulatory filing on Friday that Capital Research and Management Company, the investment management arm of Capital Group, had acquired a 5.61% stake through purchases made on April 22 and May 4. The move places Capital Group among KT&G’s prominent foreign shareholders, alongside BlackRock, First Eagle Investment Management and Singapore’s sovereign wealth fund GIC.
May.08 by 2FIRSTS.ai