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STOCKHOLM, Sweden -- Swedish Match AB and Philip Morris International (PMI) agreed to establish an exclusive joint venture company to commercialize Swedish snus and other smokefree tobacco products worldwide, outside of Scandinavia and the United States, Swedish Match stated.
"We are delighted to join forces with Swedish Match and are confident that this exclusive partnership will over time generate strong results for the benefit of our respective shareholders," Louis Camilleri, Chairman and CEO of PMI, said in a statement.
The partnership will utilize Swedish Match’s product development and manufacturing expertise, and PMI’s sales and distribution infrastructure. Under the agreement, each company will own a 50 percent stake and will license their respective trademarks and intellectual property to the joint venture, the company stated.
"PMI is the ideal strategic partner for Swedish Match in the smokefree category. This agreement provides us with the opportunity to bring our quality products to consumers across a broader geography," Lars Dahlgren, Swedish Match president and CEO, said in a statement. "The smokefree category has demonstrated substantial growth in Sweden and Norway over a number of years and we believe that smokefree tobacco products, and especially Swedish Snus, have potential outside of their current markets."
The joint venture will be based in Stockholm and a board of directors will consist of six members, with three nominated by each company, according to the company.