ACQUISITION OF UAB VMTG SHARES AUTHORISED

The Competition Council in its meeting examined the notification submitted by UAB Vesiga on intended concentration by acquiring 100 % shares of UAB VMTG, and authorised the implementation of the transaction in accordance with the submitted notification.

It has been established that the intended transaction was changing the degree of concentration in the relevant market for sauce and spices, as well as in certain segments of the market, – namely, the mayonnaise segment. The concentration transaction implemented by UAB Vesiga, the producer of the well-known Daumantų brand through the acquisition of 100% shares of VMTG managing the Vilnius mayonnaise factory was assessed by the Competition Council as horizontal. Although, following the transaction, the concentration participant will account for a significant share mayonnaise sale market in Lithuania, this, nevertheless will not result in a creation or strengthening of a dominant position, or a significant lessening of competition in the relevant market. The intended transaction will not result the absolute advantage for the undertaking concerned and, therefore, no additional barriers capable of restricting the free entry into the market will be created. The trade in mayonnaise with the EU States is being freely conducted, for a number of reasons the assortment is expanding and the prices are significantly decreasing not only in the mayonnaise, but also in the sauce and spice markets. In its assessment of the market trends the Competition Council have noticed the increasing supply substitutability and the disappearing limits between individual market segments. Furthermore, the undertaking following the concentration would not be able to acquire a unilateral decisive influence also due to the influence of strong buyers (networks of retail trade and participants of the wholesale trade market).

In July 2004, the Competition Council had authorised UAB ZIP3, related to VMGT, both controlling the Vilnius mayonnaise factory to implement concentration by acquiring 100 % shares of UAB Vesiga, but the transaction was not effected.