LATVIAN COMPANIES RECEIVE MERGER CLEARANCE
The Lithuanian competition authority Konkurencijos taryba has cleared the acquisition of 100 per cent of the shares of the Latvian company Santa Monica Networks and indirect control of the Lithuanian company Santa Monica Networks by Latvijas Mobilais Telefons.
On 2 July 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.
Latvijas Mobilais Telefons offers wireless and other communications services. Its related undertakings supply telecommunications equipment in specialised retail stores, offer fixed and mobile solutions, wireless and wired communications services, etc. Latvijas Mobilais Telefons operates in Lithuania through another Latvian company LMT Retail & Logistics, which provides warranty and non-warranty repair services of telecommunications equipment in Lithuania.
The Latvian firm Santa Monica Networks operates in Lithuania through its related undertaking Santa Monica Networks, which sells IT infrastructure solutions and provides IT development, integration and maintenance services.
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.