Ingka Group, which operates most of IKEA's furniture stores, announced the acquisition of the largest forest area in its history, located in Latvia and Estonia. The deal is worth EUR 720 million.
“The investment unit of Ingka Group, IKEA's main retailer, has agreed to acquire approximately 153,000 hectares of land in Latvia and Estonia, 89% of which is forest, from Södra, Sweden's largest forest owners' association,“ the company said in a press release.
Ingka Group will not import wood, but will enter into partnerships with local sawmills and wood panel manufacturers. The deal with Södra is subject to approval by “the relevant regulatory authorities“.
Ingka Group is one of the largest private companies in the retail and investment sectors, responsible, among other things, for managing IKEA's retail operations in over 30 countries. It currently owns approximately 331,500 hectares of land in 7 countries: Latvia (110,000 hectares), Estonia (31,000 hectares), Lithuania (27,000 hectares), USA (75,000 hectares), Romania (51,000 hectares), New Zealand (28,500 hectares) and Finland (9,000 hectares).
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