Philip Morris International Inc (NYSE:PM) confirmed that its takeover bid for Vectura Group PLC (AIM:VEC) has become unconditional.
Acceptances of the offer pitched at 165p per share has now reached 74%, exceeding the 50% needed for the transaction to proceed.
The tobacco company is now clear to buy the British inhaler and nebuliser group, with the offer remaining open to the rest of the outstanding shareholders until the end of September.
“Despite the ethical outcry, Vectura shareholders have succumbed to Big Tobacco’s big pockets,” AJ Bell analyst Danni Hewson said in a note.
“It will raise a few eyebrows not least because the deal was seen as a chance to weigh up exactly how some of the city’s big names were really walking the ESG walk they’ve talked so loudly about embracing.”
Philip Morris chief executive Jacek Olczak, in a statement, added: “We are very excited about the critical role Vectura will play in our Beyond Nicotine strategy and 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 US$1bn in net revenues from Beyond Nicotine products by 2025."