Baltic miller companies plan major merger

Latvian grain producer JSC Dobeles dzirnavnieks signed a contract for the purchase of 100% capital shares of the Lithuanian AB “Baltic Mill”. The deal still needs to be accepted by the competition supervisors, the company said October 22.

AB “Baltic Mill” owns miller companies in all three Baltic States - Lithuania UAB „Malsena Plius“, Latvia AB „Rigas Dzirnavnieks“, Estonia „Balti Veski“ – and pasta production company UAB „Amber Pasta“. 

“We have presented reports on the merger of market participants to the Competition Councils of all three Baltic States and are looking forward to starting work on developing new products,” said Kristaps Amsils, Chairman of the board of Dobeles Dzirnavnieks. A decision from the Competition Councils is expected early next year.

Amsils said this would be a very important step in the company's development: “This will allow us not only to develop a wider range of products for the domestic market, but will significantly strengthen our capabilities to compete globally and meet customer demand in markets where product order volumes and delivery deadlines are challenging enough. Only by getting additional production capacity will we not lose the pace we take and can stand next to the world's biggest players as soon as possible.”

Following the implementation of the transaction, Dobeles dzirnavnieks intends to invest in upgrading and expanding the production facilities of the Lithuanian grain processor. As there is currently a lack of capacity to process buckwheat in industrial quantities and buckwheat grown in Latvia is being transported to foreign factories, it is planned to set up buckwheat processing infrastructure in Riga. It is also planned to start producing a number of new innovative products.

 

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