On August 6, 2026, the Latvian competition authority (KP) approved the merger allowing SIA Hipocredit Group to gain decisive influence over AS Hipocredit.

SIA Hipocredit Group is a holding company that will become the holding entity for AS Hipocredit post-merger and will not engage in business activities. The group includes SIA MyCredit, a licensed non-bank lender in Latvia specializing in consumer credit services secured by real estate. Another group company, SIA Silva Finance, also operates as a non-bank lender focusing on loans secured by forest and agricultural land.

AS Hipocredit is a non-bank lender providing various credit services to both individuals and legal entities in Latvia.

The KP concluded that the merger would affect the mortgage lending market for consumers and legal entities in Latvia. The authority analyzed potential market segmentation based on the type of service provider, distinguishing between non-bank lenders and banks, and found that the merger's conclusions remained unchanged regardless of this segmentation.

Additionally, the KP noted that the merger would also impact vertically related markets, including loan comparison and credit intermediation services, as well as digital marketing services in the financial sector. However, the geographical market boundaries for these impacts remain open for discussion.

After reviewing the information provided by the companies, the KP determined that the merger would not significantly alter market structure, reduce competition, or create or strengthen a dominant position in any of the relevant markets. Therefore, the KP decided to allow the merger.

On July 16, 2026, SIA Hipocredit Group informed the KP that the merger had been completed, with SIA Hipocredit Group acquiring 100% of AS Hipocredit's shares, thus gaining decisive influence over AS Hipocredit.

The KP reminded that the existing regulations do not prevent the merger participants from executing the merger after submitting a complete merger report and before the KP's final decision. However, this action is taken at the participants' own risk, as they cannot rely on the future content of the KP's decision. If the KP issues a prohibitive decision or allows the merger with binding conditions, the participants must comply with the KP's requirements, including restoring the pre-merger status if necessary.

To prevent significant reductions in competition due to mergers, the KP's approval is required for transactions meeting the criteria set out in the Competition Law. This ensures state control over market concentration to avoid structural changes that could limit consumer choices or lead to non-competitive pricing in the long term.