INVALDA INVL RECEIVES PERMISSION TO ACQUIRE LIFE INSURANCE BUSINESS IN BALTIC STATES

The Lithuanian competition authority Konkurencijos taryba has cleared the acquisition of sole control of Mandatum Life Insurance Company Limited life insurance business in Lithuania, Latvia and Estonia by Invalda INVL indirectly through the company INVL Life.

On 7 September 2021 Konkurencijos taryba received merger notification. Other market participants (interested parties) did not provide any reasoned opinions on the possible negative effects of the transaction on competition.

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

Invalda INVL is engaged in investment activities. Its related undertaking INVL Life, which has been established for the purposes of the transaction, will perform insurance activities. Other related companies are engaged in investment activities, the management of pension and investment funds, alternative investments and private equity, the firms also provide services related to the administration of agricultural land, building maintenance, etc.

The business transferred by Mandatum Life Insurance Company Limited includes life insurance portfolio belonging to the Lithuanian, Latvian and Estonian branches of the company, i. e. life insurance policies concluded in the Baltic states, related assets, contracts, receivables and payables, commitments, employees, information and material necessary for a smooth takeover and management of the insurance portfolio.

Mandatum Life Insurance Company Limited operates through a Lithuanian branch. The business to be acquired includes life insurance activities conducted by this branch which will be continued only until the merger has been implemented.

The intended merger must be notified to Konkurencijos taryba 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.