Baltic, China, Good for Business, Internet, Technology

The transaction will see Hikvision achieve single dominance over BK Grupp, it appears from the notice of consolidation filed with the Competition Authority.

Headquartered in China, Hikvision produces video surveillance and other security equipment, which is sold all over the world. In addition, the group also operates in the areas of smart household appliances, industrial automation and automotive electronics.

Hikvision is operating in the Estonian market through Hangzhou Hikvision Technology Co Ltd and Pyronix Ltd, both of which are part of the Hikvision group. 

BK Eesti AS is Hikvision's authorized dealer in Estonia. The company sells video surveillance equipment, security systems, access control and fire detection systems and other products to a number of international security companies.

BK Grupp also owns BK Latvia SIA and BK grupe UAB, which sell the said products in Latvia and Lithuania, respectively.

The acquisition does not entail any horizontal overlap between the parties. The activities of the parties to the transaction are linked in a vertical direction as BK is a distributor of Hikvision products. The market shares of the parties to the acquisition remain below 25%, thus the transaction does not create any affected markets.

Hikvision is acquiring direct single dominance over BK for the purpose of improving its marketing activities in the Baltics. 

The price of the transaction has not been disclosed to the public.

Bloomberg reported at the end of June that the US Department of Defense had unveiled a list of 20 Chinese companies that are owned or controlled by China's military, according to the Pentagon. Among others, the list also includes Hikvision.

Estonian security expert Vallo Poldma said in an interview to Postimees in February last year that Hikvision along with another Chinese seller of video surveillance products Dahua provide cheap mass produced goods the security of which has always been a weak point. Hikvision's links to the Chinese government have also been confirmed.