In a statement on Wednesday, Philip Morris International Inc said, it was making a cash offer to acquire Swedish tobacco and nicotine products maker Swedish Match for 106 Swedish crowns per share.

The value of the offer for Swedish Match, a Stockholm-listed company, amounted to approximately $16 billion (161.2 billion Swedish crowns), said the company in a statement.

With the news reaching the market on Tuesday, Swedish Match’ shares surged to a record high.

This acquisition sees Philip Morris betting on the fast growing market for cigarette alternatives.

While the bulk of its profit comes from a Swedish-style snuff called “snus”, sales of its Zyn tobacco-free nicotine pouches are also seeing rapid growth in Scandinavia and in the United States.

In a separate statement, Swedish Match’s board said, 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)

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Tags: acquire, acquisition, cash offer, cigarette alternatives, growth prospects, M&A, merger, nicotine, nicotine pouches, Philip Morris International Inc, Scandinavia, shares, Stockholm listed, Swedish, Swedish Match, tobacco, tobacco free, United States, Zyn