INTERNATIONAL INSURANCE GROUP RECEIVED MERGER CLEARANCE

The Lithuanian competition authority Konkurencijos taryba cleared the acquisition of 100 per cent and sole control of the Estonian insurance company Seesam Insurance by the Austrian company VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe (VIG).

On May 31 the Council received merger notification. No opinions or objections regarding the transaction were submitted to the Council by interested parties.

Having evaluated the circumstances related to the transaction, Konkurencijos taryba acknowledged that the intended merger will not create or strengthen the dominant position, or significantly restrict competition in the relevant markets.

Competition law experts acknowledged that after the transaction has been implemented, the number of undertakings providing general insurance services will decrease, however, since the market share of Seesam in the insurance markets under examination was not significant, the merger would not cause substantial changes in the markets.

The international insurance group VIG manages several companies and subsidiaries in Lithuania. Compensa Vienna Insurance Group, the subsidiary of BTA Baltic Insurance Company in Lithuania, the subsidiary of Compensa Life Vienna Insurance Group in Lithuania, Compensa Life Distribution provides various life and general insurance services. In Lithuania Compensa Services provides claim settlement services, while VIG RE zajištovna – property, accident, life and health reinsurance services.

Seesam Insurance provides insurance services in three Baltic states. Its subsidiary in Lithuania provides general insurance services.

The intended merger must be notified to the Competition Council and clearance must be obtained if the combined aggregate income of merging parties in the business year preceding the merger exceeds EUR 20 million and the aggregate income of each of at least two merging parties in the business year preceding the merger exceeds EUR 2 million.