The Latvian competition authority, Konkurences padome (KP), has approved the merger between OÜ Infortar Agro and UAB LITAGRA, allowing Infortar Agro to gain decisive influence over LITAGRA.

OÜ Infortar Agro is a holding company owned by AS Infortar, which operates in various sectors including energy, real estate, agriculture, hotel management, and financial investment management. In Latvia, the group's activities primarily focus on energy, real estate, hotel management, and agriculture, including the sale of fresh milk.

UAB LITAGRA and its affiliates mainly operate in the agricultural sector in Lithuania, with its only related company in Latvia being UAB Joniškio grūdai, which produces and sells animal feed for various livestock.

The KP's analysis indicated a vertical link between the merger participants' activities, particularly between the sale of combined feed for cattle and dairy farming. However, the KP concluded that the merger would not significantly alter market structure, reduce competition, or create or strengthen a dominant position in any of the relevant markets in Latvia.

As a result, the KP has allowed the merger to proceed, ensuring that it does not lead to a substantial decrease in competition. The authority emphasizes the importance of controlling market concentration to prevent long-term limitations on consumer choices or the imposition of non-competitive prices.