The Latvian Competition Council (KP) has approved the acquisition of decisive influence by SIA 'Linas Agro' over SIA 'Elagro Trade' without identifying any substantial competition concerns, enabling the merger to move forward.

'Linas Agro' is part of the AB Akola Group, engaged in various agricultural activities across Europe and globally, while in Latvia, it focuses on grain and oilseed procurement, trading, storage, as well as the sale of agricultural supplies and certified seed production.

On the other hand, 'Elagro Trade' primarily deals with grain and oilseed procurement, processing, storage, fertilizer and plant protection product trading, seed sales, transportation, and packaging.

The KP notes that both merging parties operate in similar markets related to grain and seed procurement, processing, storage, and trading, as well as supplying agricultural inputs to farmers. Following the merger, 'Linas Agro' plans to expand its operations, increase procurement and sales volumes in the grain segment, aiming to be more attractive to suppliers and customers.

After evaluating the information provided by the companies and available to the KP, it concludes that the merger will not significantly alter market structure, reduce competition, or establish or strengthen a dominant position in the relevant markets in Latvia, hence approving the merger.

To prevent a substantial decrease in competition due to mergers, transactions meeting the criteria set out in the Competition Law require approval from the Competition Council. This ensures state control over market concentration to avoid structural changes that could limit consumer choices or lead to non-competitive pricing in the long term.