On July 24, 2025, the Latvian Competition Authority (KP) approved SIA Circle K Latvia's acquisition of decisive control over 26 gas stations owned by SIA ASTARTE-NAFTA. To address potential competition risks, KP imposed conditions requiring that one of the acquired gas stations in Dobele be maintained as an automatic gas station while Circle K operates its franchise gas stations.

Both Circle K and ASTARTE-NAFTA are engaged in the retail and wholesale of fuel and petroleum products, offering additional goods and services such as autogas, snacks, hot beverages, and essential items. Circle K is a leading fuel retailer in Latvia, operating 72 full-service and automatic gas stations, including franchise locations.

The merger will impact areas where ASTARTE-NAFTA gas stations are located, including populated areas and nearby highways across Latvia. KP concluded that in some regions, such as Līvāni and Aizpute, where Circle K has not previously operated, competition will not decrease as ASTARTE-NAFTA will be replaced by Circle K.

However, in administrative territories like Tukums, Limbaži, Jēkabpils, and Jelgava, where both companies overlap, KP analyzed market shares and concentration metrics. Using upward pricing pressure tests (UPP) and gross upward pricing pressure indices (GUPPI), KP found that the merger would not significantly reduce competition or lead to price increases in these areas, as other market players would still provide consumer choice.

Particular attention was given to the Dobele market, where Circle K plans to acquire a gas station already managed by a Circle K franchisee. KP determined that the franchisee's operations depend on Circle K's supply, systems, contracts with B2B clients, loyalty programs, and marketing strategies. Thus, the franchisee's market share is also attributed to Circle K.

KP found that the merger would significantly increase Circle K's market share in the retail diesel and gasoline markets in Dobele, raising concerns about potential price increases. To alleviate these concerns, Circle K proposed conditions to convert the acquired gas station into an automatic station, which typically offers lower fuel prices than full-service stations.

After evaluating the proposed conditions, KP concluded that they effectively addressed concerns about price increases in Dobele, as indicated by UPP and GUPPI test results, and mitigated negative impacts on competition. Consequently, KP approved the merger with the imposed conditions.

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