LATVIAN COMPANY ECO BALTIA RECEIVES MERGER CLEARANCE

Lithuanian competition authority Konkurencijos taryba has cleared the acquisition by Latvian company AS Eco Baltia of up to 100 per cent of shares and sole control of AWT Holding and therefore allowed the former to indirectly (through AWT Holding) acquire control of Ecoservice, Ecoservice projektai, Ecoservice Klaipėda, Ecoplasta, Marijampolės švara, Biržų komunalinis ūkis, Pagėgių Savivaldybės komunalinis ūkis (the Merger).

Konkurencijos taryba was notified about the Merger on 8 July 2021. No reasoned opinions on possible negative effects of the transaction on competition were submitted to the authority by market participants (interested parties).

Having evaluated all the relevant circumstances, Konkurencijos taryba found that the Merger would not create or strengthen the dominant position, or significantly restrict competition in the relevant markets.

AS Eco Baltia is jointly controlled by INVL Baltic Sea Growth Fund, a private equity investment fund dedicated to professional investors, and the European Bank for Reconstruction and Development. INVL Baltic Sea Growth Fund totalling EUR 165 million has made investments into four companies engaged in health care, engineering services and environmental management. Undertakings related to INVL Baltic Sea Growth Fund produce medical and dental devices, instruments and supplies, steel structures for various purposes, technological structures, equipment and containers, as well as carry out investment activities, design and manufacture metal constructions, provide health care and specialized hair transplantation services, produce mobility devices.

Undertakings related to AS Eco Baltia are engaged in the supply of secondary raw materials and recycled plastic products in Lithuania.

AWT Holding owns 100 per cent of Ecoservice shares. The latter company and the undertakings related to it are engaged in the collection, transportation and processing of municipal waste and secondary raw materials in Lithuania. They also provide street and other territory management services, winter services, rent bio toilets, carry out wastewater collection and transmission, sell waste collection containers, secondary raw materials and recycled plastic products.

A 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.