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Sweden's Ikea buys forest holdings in Baltic states

BC, Vilnius, 07.09.2016.Print version
Sweden's furniture giant Ikea has purchased about 38,000 hectares of forest in Lithuania, Latvia and Estonia for about 65 mln euros, reports LETA/BNS according to Verslo Zinios daily.

Last year, Ikea bought a total of 72,000 hectares of forests in Lithuania, Latvia, Estonia and Romania for at least 115 mln euros, Bloomberg then said with reference to Sweden's farmer daily ATL.

 Ikea did not elaborate on the share of forests purchased by the Swedish concern in Lithuania and the sum paid for the holdings in Lithuania.

IKEA's subsidiary IRI Investments last summer purchased 33,600 hectares of forest in Romania, becoming the largest forest owner in this country. According to Romania Insider portal, the sum of the deal was EUR 50 mln. Thus, the estimates suggest that forests for EUR 65 mln have been purchased in the Baltic states, Verslo Zinios reported.

ATL said that IKEA plans to continue purchase of forests in order to reduce dependence on fluctuation of timber prices.

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