The Competition Council of Latvia has adopted a resolution allowing Linas Agro Group to implement the concentration and acquire the companies belonging to KG Group.
The decision was made by the Latvian Competition institution after examining an application received on 20th January 2021 from AB Linas Agro Group about the intention to acquire AB Kauno grūdai, AB Vilniaus paukštynas, AB Kaišiadorių paukštynas and related companies.
The Competition Council of Latvia states in their decision that the market, where Lithuanian groups of enterprises are operating is larger than the territory of Latvia, therefore, the acquisition will not substantially change the structure of the Latvian market, reduce competition or strengthen the dominant position of the companies involved.
AB Linas Agro Group has signed a share purchase agreement regarding the acquisition of controlling stakes in AB Kauno grūdai, AB Kaišiadorių paukštynas and AB Vilniaus paukštynas and related companies on 2nd October 2020.
The decision of the Lithuanian Competition Council regarding the implementation of the concentration is still to be made. For the transaction to go ahead, it must also be approved by the competition authorities in Russia, Poland and Estonia.