Analytics, Latvia, Markets and Companies

Although last fall it was denied that the enterprise could be sold, at the present moment the decision of Latvia's Competition Council is being awaited regarding the company's plea for the possible merger with the Estonian company.

As Db found out from the Competition Council, on February 22 this year, the council received a complete report about planned the merger of Tartu Veski and Dobeles dzirnavnieks. However, information provided in the report cannot be released presently.

As the Competition Council's senior public relations expert Maris Gorbunovs said, during a council's meeting on May 19, a decision was made to carry out additional investigation in the case. The council has to adopt the final decision – to allow or deny the merger of the companies – in four-month time from the day the investigation begins.

Chairman and the major co-owner of Dobeles dzirnavnieks Vitauts Paskausks did not wish to comment on the possible amalgamation of the enterprises and promised to Db to give his opinion in around month's time.

When asked if it is due to the Competition Council's decision that still has to be awaited, Paskausks admitted such a possibility. He also pointed out that the costs of raw materials and other resources have been growing very fast, thus the company has to look for solutions how to work more efficiently.

As reported, profit of Dobeles dzirnavnieks last year reached LVL 387,000 – 69% up from 2006, as LETA was informed by the company's head of development, Iveta Ozolina.

Net turnover at Dobeles dzirnavnieks last year increased 12%, reaching LVL 25 million.

Estonia-based grain processing company Tartu Veski is the leading wheat and rye flour producer in Estonia, according to information at the company's Internet website.