Korea Tobacco Plans To Acquire The Nordic Nicotine Pouch Company For 200 Million US Dollars.

According to the "Korea Economic Daily", South Korean tobacco company KT&G is in talks to acquire a leading nicotine pouch company in Northern Europe for 200 million US dollars. According to an investment bank source, in the context of tightened regulations and shrinking traditional cigarette market, this major South Korean tobacco and ginseng producer is exploring new sources of performance growth.
The newspaper stated that if the deal is completed, this will be KT&G's first overseas acquisition since 2011 when it purchased 60% of the Indonesian tobacco manufacturer Trisakti Purwosari Makmur for approximately 90 million US dollars.
The activist investor of KT&G, Flashlight Capital Partners, urges the company to follow the lead of global peers like Philip Morris International and accelerate its entry into new fields. Philip Morris acquired the producer of Zyn nicotine pouches, Swedish Match Company, for 16 billion US dollars in 2022, thus entering the nicotine pouch market. Currently, KT&G has refused to comment on the acquisition negotiations, stating that it has not yet made a final decision.