KT&G Plans $200 Million Acquisition of Nordic Pouch Company

Jun.04

KT&G is considering acquiring a Nordic nicotine pouch maker for about KRW 300 billion (USD 200 million), its largest overseas deal since 2011, according to sources. The move aims to boost its oral nicotine portfolio as cigarette sales decline and regulations tighten. KT&G declined to comment, saying no decision has been finalized.

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.

References:

[1] KT&G seeks $200 mn acquisition of Nordic nicotine pouch maker

Also Read:

[1] World Tobacco Development Report 2024 (Part III)

[2] KT&G Accelerates HNB Expansion: New Central Asia Plant Completed, Leadership Reshuffle, Lil Hybrid 3.0 Enters Japan

[3] S. Korean Court Nears Final Ruling on $35M Claim Against PMI, BAT, KT&G

[4] KT&G suspends orders for "Lil Hybrid 3.0" due to Vietnam ban

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