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14 November 20223 minute read

DLA Piper advises Philip Morris International Inc. on the completion of its US$16 billion acquisition of Swedish Match

DLA Piper advised Philip Morris Holland Holdings B.V., an affiliate of Philip Morris International Inc. (PMI), on the completion of its recommended public offer to the shareholders of Swedish Match AB (Swedish Match), a public limited company with shares listed on Nasdaq Stockholm. Assuming 100 percent ownership of Swedish Match, the offer values Swedish Match at approximately US$16 billion.

PMI is a leading international tobacco company working to deliver a smoke-free future and evolving its portfolio for the long term to include reduced-risk products including heat-not-burn, vapor and oral nicotine products, in markets outside of the United States of America. The completion of this transaction represents a significant milestone in the delivery of PMI’s vision to become predominantly smoke-free by 2025 and, ultimately, completely smoke-free over time.

Swedish Match is a leading developer, manufacturer and distributor of global brands in the smoke-free product segment. PMI and Swedish Match share a vision of a world without cigarettes and a commitment to developing and commercializing smoke-free products that are less harmful than cigarettes.

The DLA Piper team in the US was led by partners Stasia Kelly and Sanjay Shirodkar (both in Washington, DC), Kathleen Ruhland (Minneapolis) and Jonathan Klein (New York) and included associate Brian Wohlberg (Chicago). Cross-practice teams from 20 DLA Piper offices were also involved in the transaction.

The DLA Piper UK team was led by London-based corporate partners Tom Heylen and Tracey Renshaw and included senior associates Sarah Riley and Isabella Gee and associates Freddie De Boise and Kirsty Underhill.

DLA Piper provided support in Life Sciences, led by sector Global Co-Chair Marco de Morpurgo (EU) and Christopher Gismondi (US); Patents, led by Dr Philipp Cepl (EU) and Larissa Bifano, US chair of the Patent Prosecution practice; and in Sustainability, Environmental, Social, and Governance (SESG), led by Sean Faehrmann of DLA Piper Business Advisory.

Jonathan Klein added: “This deal came with a host of transactional and regulatory complexities, including navigating cross-border tender offer rules, but with our team’s experience and skillset, we were able to work across sectors and geographies to complete this deal.” 

Stasia Kelly said: “We are very proud of our ability to work as a global team on this important deal. The completion of this public offer could not have been accomplished without the nuanced efforts of each practice group.”

Tom Heylen commented: “We are delighted to have supported PMI on completing this transaction and look forward to continuing to assist them in their vision of a smoke-free future.”