The Latvian competition authority, known as KP, has granted permission for the merger of Vizii Urban and TRANZĪTS L, concluding that the merger will not significantly harm competition. However, KP noted that high qualification requirements in public procurement processes in Liepaja limit the participation of a broader range of candidates.

Vizii Urban operates under the CleanR Group, managing leading environmental service companies in Latvia. Its primary activities include urban cleaning and maintenance, offering services for streets, roads, public and private areas, parks, and other territories, as well as infrastructure cleaning services throughout the year. Major clients include municipalities such as Riga, Jurmala, Rezekne, Tukums, and Liepaja.

TRANZĪTS L specializes in the maintenance of streets, roads, and bike paths, as well as the upkeep of green spaces and beaches, primarily serving the Liepaja municipality. The company regularly participates in public procurements organized by the municipality, which is its main operational focus.

The KP's analysis revealed that the activities of both companies overlap in two markets within the Liepaja administrative area: the road maintenance services market and the urban maintenance services market. Given the significant impact of public procurement on these markets, KP conducted an in-depth study, examining not only procurements in the mentioned markets but also those in other Latvian municipalities.

KP identified barriers to entry in the road and urban maintenance markets and assessed the potential compensatory purchasing power of the Liepaja municipality. The authority concluded that the merger would increase the market share of the merged entities in the road maintenance services market significantly, while the market share in the urban maintenance services market would not increase substantially.

Furthermore, KP acknowledged that competition in these markets is maintained through public procurements, allowing other market participants to enter and secure contracts with the Liepaja municipality, potentially altering competitive conditions.

KP's analysis also indicated that the Liepaja municipality has the ability to influence the road and urban maintenance markets, as it conducts most of the procurements in these areas, sets procurement conditions, and oversees contract execution.

KP found that the procurement rules set by the Liepaja municipality include high qualification requirements regarding prior experience and turnover, creating barriers for companies entering the road maintenance services market. In the urban maintenance services market, barriers for new or smaller participants arise from high turnover and technical requirements included in the procurements, as well as overly broad definitions of procurement subjects.

KP concluded that if the procurement procedures in these markets were modified, several companies could potentially be interested in participating.