CGATES RECEIVES PERMISSION TO ACQUIRE PART OF SPLIUS BUSINESS

The Competition Council has granted permission to Cgates, a company providing fixed Internet access, pay-TV, and telephony services in Lithuania, to acquire sole control of a newly established company to which parts of SPLIUS's business – providing similar services – will be transferred.

The merger notification was received on May 14, 2025. It is planned to transfer to the new company the business segment separated from SPLIUS, which includes fiber-optic Internet, smart TV, and fixed-line communication services in the Klaipėda, Gargždai, Kretinga, Šilutė, Radviliškis, Kuršėnai, Joniškis, Kelmė, Pasvalys, Naujoji Akmenė, and Pakruojis regions.

Having assessed the circumstances of the transaction, the Competition Council has concluded that the proposed merger will not result in the creation or strengthening of a dominant position or significant restriction of competition in the relevant markets.

Cgates provides fixed Internet access, pay-TV, and television program delivery services over the Internet, as well as telephony services in Lithuania. It also engages in optical fiber rental, electronic device sales, and other activities.

EuVECA Livonia Partners, a company registered in Latvia and affiliated with Cgates, controls investment funds. One of these, KS EuVECA Livonia Partners Fund I, invests in companies operating in all three Baltic countries. In Lithuania, these companies produce fiberglass and non-woven materials, are engaged in the wholesale trade of hardware, plumbing, and heating equipment and supplies, and provide data processing, programming, computer equipment management, and other services.

The newly established company, of which Cgates will acquire sole control, will not provide fiber-optic Internet, smart TV, and fixed-line communication services in the city of Šiauliai. As previously determined by the Competition Council, the acquisition of 100 per cent of SPLIUS shares by Cgates would restrict competition in Šiauliai; therefore, that transaction was not approved in June 2021.

In May of the last year, the Supreme Administrative Court of Lithuania upheld the decision of the Vilnius Regional Administrative Court, which recognized that the Competition Council had justified its refusal to grant permission for Cgates to acquire 100 per cent of SPLIUS shares and assume sole control of the company.