Philip Morris International obtains European approval for $16 billion acquisition of Swedish Match

In October 2022, tobacco giant Philip Morris International obtained conditional clearance from the European Commission to acquire Swedish Match. Compass Lexecon provided the Parties with economic advice on the competitive effects of the transaction.

In May 2022, Philip Morris International (“PMI”), a manufacturer of combustible tobacco and smoke-free products, announced its intention to acquire Swedish Match with the aim of expanding its presence in the fast-growing market for cigarette alternatives, such as nicotine pouches.

Compass Lexecon supported the merging Parties during pre-notification and the European Commission's Phase I investigation. The team analysed multiple complex country-specific datasets to help the Parties identify potential overlaps and affected markets, and estimate market shares across numerous products and countries. We also assisted the Parties with responding to detailed requests for information from the Commission.

The Compass Lexecon team was led by Jorge Padilla, Paolo Ramezzana and Sergey Khodjamirian, including Giulio Paltrinieri, Nikki Hui, Matthias Bremen, Ziyue Yang, Aida Moreu, Kseniia Brui, Max Dreher, Zsofia Sipos and Mads Andersen. We worked together with a team from Clifford Chance led by Richard Blewett, Sue Hinchliffe and Katharine Missenden.