The Latvian competition authority, known as the Competition Council (KP), has approved the acquisition of Estonia Farmid OÜ by OÜ EG Biofond, an Estonian holding company. This decision was made on June 19, 2025, after the KP determined that the merger would not lead to significant harm to competition in the market.

OÜ EG Biofond is part of the Infortar group, which operates in various sectors including energy, shipping, real estate, and financial investments. In Latvia and Estonia, Infortar manages hotels, a spa center, a publishing house, and fast-food restaurants. Biofond primarily focuses on dairy farming, biogas production, and wholesale distribution, mainly operating in Estonia.

Estonia Farmid OÜ is also registered in Estonia and is engaged in the production of agricultural products, particularly dairy cattle and grain cultivation, along with the sale of dairy and grain products. Its related companies in Latvia, OÜ Estonia and OÜ Kabala Agro, are involved in the trade of agricultural products, including dairy. Grain trading and related activities predominantly occur in Estonia.

The KP concluded that the merger participants operate in unrelated markets, and the merger would not significantly alter the market structure or reduce competition. Therefore, the merger is permissible under the competition law.

To prevent significant reductions in competition due to mergers, the Competition Council requires approval for transactions that meet specific criteria outlined in the competition law. This regulatory oversight aims to prevent structural changes that could limit consumer choices or lead to non-competitive pricing for goods and services in the long term.