The Latvian Competition Authority (KP) has approved the acquisition of decisive influence by the limited liability company Do It over SIA VGP Park Riga. The KP determined that the merger would not significantly harm competition in the market, allowing the transaction to proceed.

Do It is a Latvian company that facilitates procurement for JYSK franchise stores across the Baltic states, developing sales strategies, product selection, and delivery services. Additionally, Do It and its affiliates are involved in the retail of textiles, furniture, and other household goods in Latvia.

On the other hand, VGP Park Riga is a Latvian company engaged in the leasing and management of its real estate, which includes warehouses and logistics centers. It owns a warehouse and logistics center located at Ulbrokas iela 48 in Riga, which is currently leased to Do It.

The merger participants operate in vertically related markets, with Do It renting warehouse space from VGP Park Riga, where it performs storage, sorting, and packaging functions for deliveries to JYSK franchise stores throughout the Baltic region.

After evaluating the information provided by the companies and the data available to the KP, it was concluded that the merger would not significantly alter the market structure, reduce competition, or create or strengthen a dominant position in the affected markets in Latvia. Therefore, the merger is permissible.

To prevent significant reductions in competition resulting from mergers, the Competition Law requires that such transactions receive approval from the Competition Authority if they meet specific criteria. This ensures state control over market concentration, preventing structural changes that could limit consumer choices or lead to non-competitive pricing for goods and services.