LATVIA – Business news
Latvia’s largest food producer Dobeles dzirnavnieks has acquired Lithuanian grain processor Baltic Mill. The deal, the value of which was not disclosed, was completed on Thursday, Baltic Mill reported.
Reportedly rus.delfi.lv, along with a 100% stake in Baltic Mill, Dobeles dzirnavnieks has been transferred control over Latvian Rigas dzirnavnieks and Estonian Balti Veski.
However, after the Lithuanian Competition Council did not allow Dobeles dzirnavnieks to acquire Baltic Mill in August, one of Lithuania’s largest mills, Malsena Plius, and the pasta manufacturer Amber Pasta, which it operates, remain in the hands of the current shareholders – they will still be managed by Amber Trust II S.C.A. private equity fund (64.75%), RGK Invest (27.75%) and MNGM Invest (7.5%).
The transaction to purchase Baltic Mill has been completed after obtaining approvals from the relevant Latvian and Estonian institutions. Dobeles dzirnavnieks appealed the decision of the Lithuanian Competition Council in court.
The Lithuanian Competition Council announced in August that the two companies are close competitors in the flour, flour mixes and pasta markets, which are already concentrated. A combined company would take an extremely large share of the market in Lithuania, leaving no competitive pressure, the benefits of which are felt by consumers.