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The two members of the merger are active in the daily consumer goods market bearing the "top!" Mark, and they are members of SIA's "Purchasing Group". Gabriela stores are located in the Kurzeme and Pieriga regions, while Lars Limited stores are located in the Vidzeme region. As a result of the merger, the owner of SIA "Lars Limited" will change
The badessment made by CP focused on the daily retail market for consumer goods and the consumer staples market. The KP concluded that when Gabriel's purchases increase, competition in the daily consumer goods market will not change significantly, as the volume of purchases of the two companies was centrally organized as part of the "Purchasing Group". ". The merger in these territories does not lead to a change in concentration.
In badessing the information provided by the companies to KP, the KP concluded that the merger would not result in a reduction of competition in Latvia and would not develop. the dominant position in the daily market of consumer goods. Therefore, the merger is allowed. The decision is available here
In order to prevent a significant reduction in competition resulting from mergers, merger transactions that meet the criteria set out in the Competition Act require authorization from the Customs Union. Thus, KP provides state control over market concentration without creating structural changes that endanger consumers in the long run, because they have limited choices or that goods and services need to be purchased at non-competitive prices
. Ilze Pried'te, a company spokeswoman, said the two companies are strong local businesses with good profitability and a good reputation, and that their merger will improve and make the companies more efficient . "The stores will continue to work, offering the usual badortment," said Pried'te.
According to her, the company has beaten the performance of last year for all previous years, so this year "top!" plans to continue building new stores, renovating existing ones and developing local activities.
Local Top Store Network! Last year 's turnover was 304 million euros, or 25% more than in 2016, while it was 243 million euros, according to the LETA archives. The "top!" Store is a network of 20 Latvian businessmen and the third largest retail chain in Latvia since 2000. The network has 272 stores across Latvia, including 149 "top!" And 123 "mini top! 19659003] The marketing service chain "top!" Is provided by SIA "Iepirkumu grupa" According to "Firmas.lv", the turnover of the "Procurement Group" in 2017 was 25,269 million euros, but the profit was 20,114 euros. The share capital of the company is 107,109 euros.
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