EU – Baltic States, Investments, Lithuania

Ingka Beheer is seeking regulatory approval to purchase up to 100% of shares in the company, which is now controlled by Vakaru Medienos Grupe (VMG) and Vilniaus Baldai.

Sigitas Paulauskas, one of the owners of VMG, which works solely to orders provided by Ikea, said they would work on finalizing the details of the deal.

Paulauskas, who is also the board chairman of VMG, said that he could not say at the moment what stake in Giriu Bizonas the Swedes were going to buy.

Giriu Bizonas is based in Kazlu Ruda, in southwestern Lithuania.

"I am glad to see such an investor arriving: neither our banks nor our companies have so much money. In Kazlu Ruda, they intend to expand the production of both furniture and chipboard. The deal will also include a further expansion of this industry in Lithuania and an alternative in Belarus," Paulauskas said.

Ikea is also reportedly interested in a new fiberboard and cellular furniture factory that VMG plans to build in Alytus.