The Latvian competition authority (KP) has received a merger notification from SIA HUMMULI concerning its planned acquisition of SIA Food Union Management. This acquisition is expected to grant HUMMULI decisive influence over Food Union Management.

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

Food Union Management includes companies such as Rīgas Piena Kombināts and Valmieras piens, both engaged in dairy processing, purchasing fresh milk from producers, and manufacturing various dairy products for retail networks, hotels, restaurants, and catering businesses, as well as for export. Their product brands include Kārums, Rasa, Valmiera, Limbažu Piens, Dzintars, and Rasēns.

According to the merger participants, the acquisition could affect competition in vertically related markets, specifically in the fresh milk production and sales market, as well as in the dairy product manufacturing and wholesale market. The latter may be segmented by specific dairy product categories such as curd cheese, yogurt, and butter.

The geographical scope of the fresh milk production and sales market is considered to cover either the territory of Latvia or the territories of Latvia and Estonia, while the dairy product manufacturing and wholesale market may cover either the territory of Latvia or the Baltic States.

The KP is required to make a decision on the merger's approval, prohibition, or approval with conditions within one month of receiving the merger notification. If a more in-depth investigation is necessary, the decision period may be extended up to four months from the notification date.

Market participants or other interested parties wishing to provide their views on the merger's impact on competition are invited to contact KP's senior economist Andris Vītols or fill out the provided questionnaire by October 9, 2026.