Marlboro-maker Philip Morris International said it offered $16 billion to acquire smokeless tobacco company Swedish Match as the US group expands beyond its traditional cigarette business.

The board of Swedish Match recommended that its shareholders accept the bid of 106 Swedish kronor per share, nearly 40% above its closing share price on Monday, the companies said in separate statements.

The deal would total 161.2 billion Swedish kronor (€15 billion).

Stockholm-based Swedish Match derives more than 65% of its revenue from smoke-free products, including chewing tobacco and nicotine pouches.

Philip Morris sells cigarette brands such as Marlboro and Chesterfield in 180 markets outside the United States and has invested billions of dollars since 2008 in vapor products, oral nicotine and other "reduced-risk" products.