LATRAPS takes over Latvian Milk
Latvia’s Competition Council (CC) has approved the Agricultural Services Cooperative Society (LATRAPS) acquisition of SIA Latvian Milk.
The CC assessment concluded that as LATRAPS’ principal activity relates to grain, while SIA Latvian Milk is engaged in milk processing and cheese production, the transaction would not harm competition.
In March 2016, LATRAPS increased its shareholding in SIA Latvian Milk to 73.286%, thus taking over sole control of the company.
According to Latvian Milk statutes, the takeover means that LATRAPS does not have the power to unilaterally make strategic decisions, however, it can block any decisions.
In order to change this to take full control over decision making, LATRAPS needed to increase its holdings to 79.72%, triggering the CC decision.