KT&G Reportedly to Enter the Nicotine Pouch Market
According to The Korea Economic Daily, KT&G is in talks to acquire a leading Nordic nicotine pouch company for $200 million. Investment banking sources said this week that, amid tighter regulation and a shrinking traditional cigarette market, South Korea’
According to The Korea Economic Daily, KT&G is in talks to acquire a leading Nordic nicotine pouch company for $200 million. Investment banking sources said this week that, amid tighter regulation and a shrinking traditional cigarette market, the major South Korean tobacco producer is exploring new growth drivers.
The newspaper said that if the deal is completed, it would be KT&G’s first overseas merger and acquisition since 2011, when it bought a 60% stake in Indonesian tobacco manufacturer Trisakti Purwosari Makmur for about $90 million.
KT&G activist investor Flashlight Capital Partners has reportedly urged the company to follow global peers such as Philip Morris and accelerate its expansion into new categories. Philip Morris International entered the nicotine pouch market in 2022 by acquiring Swedish Match, the maker of Zyn, for $16 billion. KT&G declined to comment on the acquisition talks, saying no final decision has yet been made.
