The Latvian competition authority, known as KP, has approved the merger between SIA 'ACA Timber' and SIA 'Metsa Forest Latvia'. This decision was made on April 14, 2025, after KP determined that the merger would not significantly harm competition in the relevant markets.

SIA 'ACA Timber' is primarily engaged in the trade and logistics of timber both in Latvia and abroad, covering all stages of the timber trade chain from logging to processing. In contrast, SIA 'Metsa Forest Latvia' focuses on forestry operations, forest restoration, timber procurement, and the sale of timber products.

The activities of both companies overlap in several specific markets, including the procurement of wood resources (including logging), wholesale markets for sawlogs, pulpwood, fuel wood (including chips), and cellulose chips within Latvia.

After evaluating the information provided by the companies and the data available to KP, the authority concluded that the merger would not significantly alter the market structure, reduce competition, or create or strengthen a dominant position in any of the markets where the merging parties operate. Therefore, the merger was deemed permissible.

To prevent significant reductions in competition resulting from mergers, the Latvian Competition Law requires that such transactions receive approval from the competition authority if they meet certain criteria. This regulatory oversight ensures that market concentration does not lead to structural changes that could limit consumer choices or result in non-competitive pricing for goods and services.

For more information on merger control in Latvia, interested parties can visit the relevant section on the KP's official website.