The Latvian competition authority, known as KP, has approved the merger between AS Sentor Farm Aptiekas (SFA) and SIA Latvijas Aptieka (LA), allowing SFA to acquire 21 pharmacies from LA.

SFA operates in the retail market for pharmaceutical products, offering prescription and over-the-counter medications, dietary supplements, medical devices, and veterinary products. At the time of the merger notification, SFA had 248 pharmacies and 5 pharmacy branches across Latvia, operating under the brand 'Mēness aptieka'.

On the other hand, LA specializes in the retail of pharmaceutical products, medical devices, dietary supplements, cosmetics, and toiletries, owning a network of 65 pharmacies and 3 pharmacy branches throughout Latvia.

KP concluded that the merger would affect competition in the retail market for pharmaceutical products and veterinary medicines. However, the authority found no significant concerns regarding a substantial reduction in competition, leaving the geographical scope of the markets open for further definition.

After evaluating the information provided by the companies and conducting its analysis, 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.

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