BRUSSELS (Reuters) – Marlboro maker Philip Morris secured EU antitrust approval for its $16 billion bid for Swedish Match after pledging to sell the target’s logistics business, the European Commission said on Tuesday.
“To address the Commission’s preliminary competition concerns, Philip Morris International offered to divest Swedish Match’s logistics arm, SMD Logistics,” the EU competition enforcer said in a statement, confirming a Reuters story on Monday.
Philip Morris is seeking to expand its presence in the fast-growing market for cigarette alternatives, with sales from smoke-free products expected to make up more than its revenue by 2025.
Swedish Match makes snus, a Scandinavian moist oral tobacco product which users place behind their upper lip, where it has half of the global market.
(Reporting by Foo Yun Chee)