(Reuters) -Philip Morris International Inc. is in discussions to purchase rival Swedish Match AB. The move comes as Marlboro’s maker seeks to diversify its options for smoke-free cigarettes amid growing global criticism.

Philip Morris (NYSE:), said that talks were ongoing between the companies, although it wasn’t clear if an agreement would be reached. At $100.53 the shares of the company rose 1.6%.

According to data from Refinitiv, Swedish Match’s market capitalization was 120.92 Billion Swedish Krona (or $12.04 Billion) at last close. Philip Morris was valued at $153.37 million.

Philip Morris acquired Vectura asthma inhaler-maker Vectura last year for $1.44billion as part its long-term strategy to develop non-smoking products and become “broader health and wellness” companies.

The U.S. Food and Drug Administration published in April a long-awaited proposal that would ban menthol cigarettes and flavored cigars. They account for more then a third the overall market share of the US cigarette industry.

Swedish Match manufactures snus. It is a wet-snuff product banned in any European Union member country, except Sweden. In recent years, the company has seen significant growth in America’s cigar market and is hopeful of similar success in America with snus. However, snus faces stiff competition from its domestic market.

According to Wall Street Journal, talks between Swedish Match and Marlboro could lead to a deal by this week. This was reported earlier in the Wall Street Journal on Monday. Sources familiar with the situation said that the Wall Street Journal had first reported the story about the negotiations.

Swedish Match abandoned plans to list and spin-off its U.S. tobacco business in March

($1 = 10.0472 Swedish Crowns