Authority okays woodworking company merger

The Competition Council (KP) has decided to allow the forestry and veneer sheet production company “Stiga RM” to acquire decisive influence over the Riga Forest SIA sawmill “Norupe”.

The KP found no significant harm to competition, so it decided to allow the transaction, the competition supervisor said.

In 2018, the KP and State Audit concluded that the sawmill Norupe, a municipal company's asset, may create risks of neutrality of competition in the market and leave a negative impact on competition.

Riga Forests selected SIA “Stiga RM” as the most appropriate investor for the purchase of the sawmill, which currently operates in the logging industry, as well as in the manufacture of veneer sheets and plywood. 

After evaluating the information provided by companies and at the disposal of KP, itconcludes that the merger will not result in a significant change in the structure of the market, competition will not decrease and the dominant position will not develop or strengthen in the markets of the wood resource extraction, processing and trade sector in Latvia, therefore the merger transaction is permissible.

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