Swedish Match Soars as Philip Morris Weighs $16 Billion Deal

  • Deal would expand Philip Morris’s smokeless tobacco presence
  • Swedish Match has suspended a listing of its U.S. cigar unit

Tins of Swedish Match AB General snus smokeless tobacco.

Photographer: Ramin Talaie/Bloomberg

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Swedish Match AB shares soared after Philip Morris International Inc. said it’s in talks to buy the maker of smokeless tobacco products in a deal that would accelerate the Marlboro producer’s push beyond cigarettes.

Swedish Match surged as much as 28% in early trading in London Tuesday, giving the company a market capitalization of more than $14 billion. Both companies confirmedBloomberg Terminal the discussions in statementsBloomberg Terminal, saying talks are ongoing and there’s no certainty that an offer will be made.