By Foo Yun Chee
BRUSSELS (Reuters) -Philip Morris International is set to win unconditional EU antitrust approval for its $16 billion bid for tobacco and nicotine products maker Swedish Match, people close to the matter said on Tuesday.
Marlboro-maker Philip Morris announced its cash offer for the Stockholm-based group at 106 crowns per share in May, seeking to expand in the fast-growing market for cigarette alternatives.
Philip Morris, which was spun off from Swedish Match rival Altria in 2008, has said it wants smoke-free products to account for more than half of sales by 2025.
The European Commission, which is scheduled to finish its preliminary review of the proposed deal by Oct. 11, declined to comment.
The sources said that the EU antitrust enforcer does not see any competition issues arising from the deal, but that a final decision has not been made.
Philip Morris on Tuesday extended the acceptance period for its offer to Swedish Match shareholders to Nov. 4.
“We believe our offer remains very compelling, particularly given the current market environment,” Chief Executive Jacek Olczak said in a statement.
“We look forward to completing the transaction, while also continuing to actively progress on our strategic alternatives to Swedish Match, should the offer ultimately prove unsuccessful,” the CEO said.
(Reporting by Foo Yun Chee; Editing by David Goodman and Bill Berkrot)
