KONKURENCIJOS TARYBA CLEARS ACQUISITION OF LATVIAN COMPANY ECO BALTIA
Konkurencijos taryba cleared the acquisition of 52.81 per cent of the Latvian company Eco Baltia indirectly through BSGF Salvus, and acquisition of joint control of Eco Baltia by the investment fund INVL Baltic Sea Growth Fund together with the existing shareholder the European Bank for Reconstruction and Development.
On 15 May 2020 Konkurencijos taryba received merger notification. 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.
INVL Baltic Sea Growth Fund, a private equity investment fund for closed-end professional investors, and its related entities manufacture medical and dental devices, instruments and components, steel structures for various purposes, technological structures, equipment and containers, as well as engage in investment activities, design and manufacturing of metal structures, provision of health care services, etc.
The European Bank for Reconstruction and Development is an international financial institution that owns 30.51 per cent of the Latvian company Eco Baltia shares. The bank provides funding for projects in such areas as agriculture, energy efficiency, local environmental infrastructure, natural resources, energy, tourism, telecommunications, information technology, media and transport. 69 countries and two international institutions, namely the European Commission and the European Investment Bank, are members of this bank.
The holding company Eco Baltia which is registered in Latvia owns 100 per cent of Eco Baltia grupa shares. Undertakings related to the latter company sell secondary raw materials and recycled plastic products in Lithuania.
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.