The Latvian Competition Council has unconditionally cleared acquisition by AB Linas Agro Group of shareholding in four Latvian chicken meat and chicken meat products production companies - AS Putnu fabrika Ķekava, SIA Lielzeltiņi, SIA Cerova and SIA Broileks. The Council has concluded that the transaction is likely to result in creation of more efficient competitor which will intensify competition between vertically integrated Baltic and Scandinavian undertakings operating on the relevant market.
In the course of investigation the Competition Council came to a conclusion that the relevant geographic market on which the merging parties operate is wider than the territory of Latvia and at least Baltic-wide. The conclusion was based on very significant import volumes of chicken meat and chicken meat products into Latvia and the fact that all main competitors are present in all the Baltic markets and beyond. As a result the Council concluded that despite the fact that AS Putnu fabrika Ķekava and SIA Lielzeltiņi together produce ca. 95% of the total Latvian chicken meat production and are main suppliers of fresh/chilled chicken meat to the largest retail networks operating in Latvia, the merger will have no adverse effect on the competitive situation.
COBALT represented AB Linas Agro in merger clearance process.