A pair of developments has today’s traders talking about Philip Morris (NYSE:PM). First, the U.S. tobacco firm proposed a new, higher bid to buy out Swedish Match (OTCMKTS:SWMAF). Also, Philip Morris forged an agreement with rival Altria (NYSE:MO) to buy back the U.S. commercialization rights for a heated tobacco device called IQOS. These news items haven’t done much to move PM stock, but there’s certainly the potential for fierce price acceleration.

You might not be familiar with Swedish Match. Basically, it’s a popular Scandinavian tobacco product seller. If Philip Morris acquires Swedish Match, this would enhance the American company’s market footprint in the E.U.

Previously, Philip Morris had offered to acquire Swedish Match for 106 Swedish kronor for each Swedish Match share. Now, Philip Morris is raising its bid to 116 Swedish kronor per share, which is equivalent to $10.34.

It’s a savvy move for Philip Morris, because the company really wouldn’t be paying more. In dollar terms, the total value of the deal is roughly unchanged compared to the original offer for Swedish Match. This is because the U.S. dollar has gained so much value against the Swedish krona recently.

Major Deals Fail to Move PM Stock

Meanwhile, Philip Morris and rival Altria have agreed that the former company can purchase the latter company’s U.S. commercialization rights to IQOS. However, this deal isn’t expected to close until April 30, 2024.

IQOS is a tobacco-heating device that doesn’t burn the tobacco or produce smoke when users inhale. Thus, IQOS is considered an alternative to e-cigarettes.

There’s actually a potential connection between these two news items. If Philip Morris ends up buying out Swedish Match, then as a Wall Street Journal report suggests, Philip Morris “could market IQOS in the U.S. through the Swedish Match sales force.”

That would be quite a coup for Philip Morris, if all of the puzzle pieces fall into place. Of course, deals fall through all the time and there’s no guarantee that Philip Morris will successfully close a takeover deal with Swedish Match.

So far, none of this has moved PM stock very far. As of 10:30 a.m. Eastern, the shares were slightly down for the day. Still, there’s always the possibility that traders can bid up the Philip Morris share price, as there could be not just one but two game-changing deals in the works soon.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.