STOCKHOLM – Marlboro maker Philip Morris International Inc (NYSE 🙂 announced on Wednesday that it would make a recommendation cash offer for Swedish tobacco and nicotine product manufacturer Swedish Match, worth 106 Swedish crowns each share.

According to a statement, the offer value of the Stockholm-listed company was approximately 161.2 billion Swedish Crowns (or $16 billion).

Swedish Match shares rose record-high on Tuesday, after Philip Morris International announced media reports that the company was looking to acquire it to capitalize on the growing market for alternative cigarette products.

The majority of the company’s profits come from Swedish-style tobacco called “snus”, however, Zyn nicotine-free pouches that contain no tobacco are rapidly growing in Scandinavia and America.

The Swedish Match board said in a separate statement it believed “the terms of the offer recognise Swedish Match’s long-term growth prospects, taking into account the risks associated with the realisation of those prospects”.

($1 = 10.0381 Swedish Crowns