Philip Morris wins 83% stake in Swedish Match and goes ahead with $16bn takeover

Marlboro maker Philip Morris International (PMI) announced Monday a plan to buy Swedish Match for $16 billion, despite only getting approval for the deal from owners of 82.59 percent of the Swedish company.

Under Swedish law, a bidder has the right to initiate a compulsory buyout of the remaining shares only if the voluntary acceptance exceeds 90%. Philip Morris previously said it could reject the offer if the number of acceptances is lower.

PMI CEO Jacek Olczak said that achieving a large controlling stake should allow them to exploit the strategic potential of the deal. Also, it applies to expected revenue synergies.

In May, Philip Morris made an offer to buy Swedish Match for 106 kronor a share, valuing the company at $16 billion. In October, it raised the bid to 116 kronor a share after some investors said it was extremely low valued.