Philip Morris International (PMI), the company that makes Marlboro cigarettes, announced on Monday that it was moving forward with its $16 billion plan to acquire Swedish Match, despite receiving approval from owners of no more than 82.59% of the Swedish peer’s shares.
According to Swedish law, a bidder can only start a mandatory redemption of the remaining shares if there is more than 90% voluntary acceptance. PMI had previously stated that if acceptance was lower, it might withdraw the bid.
The acquisition of a significant controlling interest “should enable us to fully realize the strategic potential of the transaction, including anticipated revenue synergies,” said PMI Chief Executive Officer Jacek Olczak.
Swedish Match’s market value was put at $16 billion by PMI in its offer to purchase the company in May for 106 crowns per share. After some investors complained that the offer was too low, it increased it in October to 116 crowns per share.
The U.S. company said: “We look forward to welcoming Swedish Match’s staff and leading oral nicotine portfolio into the PMI family.
