PMI Extends Acceptance Period for Swedish Match Bid

Phimo International Holdings B.V. (PMI) has extended Swedish Match's acceptance period for its offer to shareholders until October 21, 2022, as the offer is awaiting approval from the European Union.

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On May 11th, Philip Morris International (PMI) announced a bid of SEK 161.2 billion ($16.14 billion) through its Dutch subsidiary to acquire Swedish Match. The acceptance period for the offer will begin on June 29, 2022, and was initially set to expire on September 30, 2022. PMI stated in a press release that it has obtained all necessary international approvals for the transaction, pending the merger control approval from the European Commission.

According to customary advance notice discussions with the European Commission, the company believes that the Commission will not complete its review of the transaction before the initial acceptance period expires on September 30. The terms and conditions of the offer remain unchanged, aside from an extension of the acceptance period. The board of Swedish Match has recommended that shareholders accept PMI's proposal, but some shareholders have expressed opposition. Reuters reported earlier this year that Bronte Capital, a Swedish Match shareholder, opposed the acquisition, calling the offer price "unacceptable." Another shareholder also questioned whether Swedish Match's long-term value is reflected in PMI's offer.

Meanwhile, according to reports, Elliott Investment Management has been increasing its stake in Swedish Match and plans to oppose PMI's acquisition of Scandinavian Tobacco Group under current terms. However, according to analyst Mads Rosendal of Danske Bank, it is unlikely that Elliott will be able to acquire a significant enough stake in Swedish Match to independently block the deal.

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