Philip Morris International completes acquisition of Vectura

Tobacco group Philip Morris International (PMI) has secured its takeover of inhaler company Vectura for £1.1 billion (€1.29 billion) following months of controversy.

A bidding war between PMI and private equity firm Carlyle was averted last month after the latter refused to raise its offer, effectively paving the way for the tobacco giant to cement its takeover.

Read more: Vectura bidding war averted as Carlyle refuses to raise offer

The company now owns a little under 75% of the company's shares, making it the majority shareholder. It only needed 50% to secure its takeover of the company.

PMI is attempting to usher in what it refers to as a "smoke-free" future with the hopes of making the majority of its portfolio made up of smoking alternatives such as e-cigarettes by 2025.

Its takeover of Vectura has garnered controversy with critics of the deal arguing that the creator of Marlboro cigarettes - which currently still make up 75% of its bottom line - could be profiting from the respiratory conditions it had a hand in causing.

The group already revealed it will be pulling Marlboro cigarettes from UK shelves within a decade and argues its push into dealing with respiratory illnesses is essential to delivering its vision for alternatives to smoking.

CEO Jacek Olczak has admitted in the past how the best-case scenario is people quitting smoking, but when that is not possible, safer alternatives must be offered.

Regarding the acquisition, he revealed he was "very excited" about the role Vectura will play in the company's "Beyond Nicotine strategy".

"[We] look forward to working with Vectura’s scientists and providing them with the resources and expertise to grow their business to help us achieve our goal of generating at least $1bn in net revenues from Beyond Nicotine products by 2025," he added.

However, various anti-smoking and respiratory illness campaigners have expressed disappointment at the acquisition.

Sarah Woolnough, the chief of Asthma UK and the British Lung Foundation tweeted: "By accepting a takeover bid from big tobacco firm PMI, Vectura has sold out millions of people living with lung disease & chosen to prioritise short-term financial gain over people’s health."

The British Thoracic Society (BTS) shared that it was "concerned" at the news and remained opposed to the takeover, describing it as "inappropriate, unethical and should have been prevented".

Read more: Philip Morris raises its bid on Vectura

"We remain concerned that this move is part of the tobacco industry's attempt to position itself as part of the solution to a smoke-free world, despite continuing to aggressively promote and sell lethal cigarettes globally," Michelle Mitchell, the CEO of Cancer Research UK said in a statement.

"It's unethical for a tobacco company to profit from treating diseases made far more prevalent because of its products," she added.

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