LONDON (Reuters), – Philip Morris (NYSE 🙂 offers $16 billion for Stockholm-based Swedish Match. This is a “healthy Premium” that the Marlboro company could still pay higher. Swedish Match, which has No. On Thursday, 10 shareholders GACMO Investors stated.

Marlboro producer Philip Morris decided Wednesday to purchase Swedish Match, the biggest maker of oral nicotine products worldwide. Snus, a chewed tobacco product that the company claims is safer than smoking, and Zyn nicotine pouches are both available. They can be used in the same manner as tobacco but they do not contain any tobacco.

Kevin Dreyer is co-chief investment officer for value at GAMCO. Japan Tobacco (OTC) Inc. (JTI) has been suggested as a rival bidder. However, it stated that it will be difficult to steal the deal. According to Refinitiv, GAMCO (formerly Gabelli Asset Management Company) owns less than 2% of Swedish Match.

He said that PMI had very rich pockets, and it would be difficult for them to outbid. “This deal is really the culmination of the last five-to-seven years of work Swedish Match has done in developing Zyn into the leading brand, and having that advantageous market share – it’s an attractive stock.”

Philip Morris refused to comment. JTI and Swedish Mix did not immediately reply to my request for comment.

For the deal to be approved by Philip Morris, at least 90% must approve it. Other shareholders are questioning whether Philip Morris’ offer is a good deal. Bronte Capital, Swedish Match’s shareholder, stated Wednesday that the Philip Morris price it agreed to pay was unacceptable.