IKEA's Investment Arm Cements Baltic Foothold with €720M Forest Buyout
Ingka Investments, the investment arm of IKEA's largest retailer, has finalized a €720 million acquisition of approximately 153,000 hectares of forest land in Latvia and Estonia from Swedish forestry association Södra, a strategic move to secure long-term sustainable assets.
- —Ingka Investments, the investment arm of Ingka Group, has finalized the acquisition of approximately 153,000 hectares of forest land in Latvia and Estonia from the Swedish forest owner association Södra for 720 million euros.
- —The acquired land includes over 130,000 hectares of forest, with 115,000 hectares in Latvia and 15,800 hectares in Estonia, making Ingka Investments one of the largest private forest landowners in the Baltic region.
- —This acquisition is part of Ingka Investments' long-term strategy to invest in sustainable, long-term assets that provide financial resilience and positive impact for Ingka Group and IKEA's business operations.
- —Ingka Investments plans to manage the acquired forests responsibly, focusing on the interests of nature, climate, and local communities, while ensuring the continued availability of wood as a renewable resource.
- —The transaction was announced in October 2025 and approved by the Latvian Competition Council in December 2025, with the deal concluding on January 30, 2026.
Recap
This acquisition is a calculated move for vertical integration, securing a vast supply of raw materials for IKEA's retail empire under the guise of a long-term sustainable investment. By controlling the forests, Ingka Group insulates itself from timber market volatility and gains significant leverage in the European wood supply chain, all while enhancing its environmental credentials. The transaction solidifies the company's power as a major landowner, transforming a strategic business necessity into a public relations asset.