The Latvian competition authority, Konkurences padome (KP), has approved the merger between SIA HUMMULI and SIA Food Union Management, allowing HUMMULI to gain decisive influence over Food Union.

SIA HUMMULI is part of a group primarily operating in Estonia, focusing on agriculture, including dairy farming, grain production, animal feed manufacturing, beef cattle breeding, and egg production and trading.

SIA Food Union Management includes Rīgas Piena Kombināts and Valmieras piens, both engaged in milk processing, purchasing fresh milk, and producing various dairy products.

KP assessed the merger's impact on the wholesale market for conventional cow's fresh milk and the dairy product production and wholesale market, leaving specific market definitions open. However, KP concluded that the merger would not significantly alter market structure, reduce competition, or create or strengthen a dominant position in any relevant market.

To prevent significant reductions in competition due to mergers, the Latvian competition law requires approval from the Konkurences padome for transactions meeting specific criteria. This ensures state control over market concentration, preventing structural changes that could limit consumer choices or lead to non-competitive pricing.