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May 11—Swedish Match, which has a major presence in Owensboro, is in talks with Philip Morris International, which wants to buy the company.
Both companies have confirmed the talks, but said little else.
Swedish Match said in an email, "The Board of Directors of Swedish Match AB has noted the recent speculation and confirms that discussions with Philip Morris International Inc. regarding a possible public takeover offer for Swedish Match are ongoing. There can be no certainty that an offer will be made, nor as to the terms of any such potential offer."
Philip Morris' announcement said, "Philip Morris International Inc. today confirmed, in response to recent market speculation, that discussions are ongoing between PMI and Swedish Match AB regarding a potential offer for the company. The discussions are in progress, and it is uncertain whether an offer will be made. PMI intends to make no further comment regarding the discussions unless and until it is appropriate to do so."
The potential deal, said to be worth $15 billion, was getting a strong response around the world.
Bloomberg.com reported Tuesday that "Swedish Match surged as much as 28% in early trading in London on Tuesday, giving the company a market capitalization of more than $14 billion."
The story said that Philip Morris' stock "edged up slightly."
According to the Daviess County Property Valuation Administrator's website, Swedish Match has 746,641 square feet under roof on its 44.5-acre site at 1121 Industrial Drive.
It's assessed at $12.39 million.
Elizabeth Griffith, manager of business retention and expansion at the Greater Owensboro Economic Development Corp., said as of late last year, the company had 637 employees here.
Brittaney Johnson, the EDC president, said she had seen the news stories about the talks, but has heard nothing from either company.
The plant was started in 1973 by Pinkerton Tobacco.
Swedish Match bought it in 1985 for $137 million.
Pamela Kaufman of Morgan Stanley told Bloomberg that there is a "compelling strategic rationale" for Philip Morris to buy Swedish Match.
She said it would accelerate Philip Morris' "smoke-free transition."
Swedish Match's Owensboro-made ZYN's nicotine pouches are the No. 1 nicotine pouch in the United States, with 173.9 million cans sold in more than 120,000 stores last year.
Worldwide sales were 198 million cans in 20 countries.
Reuters news service said Tuesday that Swedish Match's Smokefree division accounted for $1.2 billion in sales last year.