Ingka Investments, the investment arm of IKEA’s largest retailer, has announced its largest forest-based acquisition to date: a €720 million purchase of 153,066 hectares across Latvia and Estonia from Swedish forest giant Södra – home to the world’s greenest mass timber plant. The deal, which includes at least 135,702 hectares of forestland—approximately 89% of the total area—is now subject to regulatory approval in both countries.
Wood Central understands the acquisition covers all of Södra’s forest holdings in the Baltics, comprising 135,324 hectares in Latvia (119,929 hectares of forestland) and 17,742 hectares in Estonia (15,773 hectares of forestland). Once completed, Ingka Investments will own more than 230,000 hectares in Latvia alone, significantly expanding its Baltic footprint beyond the 168,000 hectares it already manages across Latvia, Estonia, and Lithuania.
Södra confirmed the total value of the transaction at approximately SEK 8 billion and will retain only two timber import subsidiaries—one in Latvia and one in Estonia—as it refocuses on managing forests owned by its 50,000 members in southern Sweden: “This acquisition is part of our long-term strategy to invest in forestland and strengthen our commitment to responsible forest management,” according to Peter van der Poel, Managing Director of Ingka Investments. “We want to contribute to the regional economies where we’re present and maintain healthy forests for generations to come.”
Globally, Ingka Investments now manages more than 331,500 hectares of forestland, including holdings in the United States (75,000 ha), Romania (51,000 ha), Aotearoa New Zealand (28,500 ha), and Finland (9,000 ha). In financial year 2025 alone, the company planted 14 million seedlings and achieved a net forest growth of 500,000 cubic meters annually, with 22% of its forests managed primarily for conservation.
Earlier this year, the company allocated 16,000 hectares of Latvian forest for a research collaboration with the European Forest Institute and Preferred by Nature. The initiative is trialling continuous-cover and closer-to-nature forestry methods aimed at improving climate resilience and reducing biodiversity impacts. Wood Central understands that Ingka Investments plans to maintain the sustainable forestry practices established by Södra and strengthen the regional value chain by partnering with Baltic sawmills and panel manufacturers—prioritizing local processing over raw timber exports.
