Key Points:
1.KT&G plans to acquire a nicotine pouch company in Northern Europe for approximately 200 million dollars.
2.This is KT&G's first overseas acquisition since 2011, paving the way for the company to enter the modern oral nicotine market.
3.KT&G is focused on optimizing its global layout and reducing its reliance on traditional tobacco business.
4.Acquisition or collaboration to help KT&G compete with global leaders, following the successful case of Philip Morris.
According to South Korean media The Korea Economic Daily, sources have revealed that South Korean tobacco company KT&G is in talks to acquire a nicotine pouch company in Northern Europe for around 300 billion Korean won (approximately 2 billion US dollars).
The report states that this potential acquisition is the result of KT&G exploring new growth drivers in the face of increasingly strict regulations and a shrinking traditional cigarette market.
If the deal is reached, this will be the first overseas acquisition by KT&G since its purchase of a 60% stake in the Indonesian tobacco company Trisakti Purwosari Makmur for approximately 140 billion Korean won (about 100 million dollars) in 2011.
In response, KT&G declined to comment on the acquisition negotiations, stating that a final decision has not yet been made.
At the shareholders' meeting in March 2025, KT&G CEO Bang Kyung-Man set global mergers and acquisitions, partnership relations, and internal product development as key pillars of the company's growth strategy.
Industry observers pointed out that KT&G seems to be expanding into the non-combustible sector through acquisitions, mirroring the strategic layout of global tobacco companies. Flashlight Capital Partners, a major investor in KT&G, has urged the company to emulate global peers, including Philip Morris, and accelerate their entry into new areas.
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