EU – Baltic States, Foodstuff, Latvia, Legislation, Markets and Companies, Mergers and take-overs

The reorganization agreement and relevant statements have already been submitted to the registration authorities. The reorganization project is to be completed at the beginning of 2016.

According to Smith-Hansen, the reorganization of the companies and changing their name will have no effect on the employees and consumers. The companies' products will be sold under their current brand names on the market, he added.

This will be functional reorganization, the goal of which is to improve efficiency, provide more time for financial quality and expanding the product portfolio, as well as raising employees' skills, explained Smith-Hansen.

The other companies of NP Foods Group – Staburadzes konditoreja, NP Logistics, Saldumu tirdznieciba and UAB Margiris – will continue their operations as separate legal entities and cooperation partners of Orkla Confectionery and Snacks Latvija, said Smith-Hansen.

Also as a result of the reorganization, Orkla’s companies Spilva and Gutta will be merged, and the merged company will be named Orkla Foods Latvija. The current Spilva head Lolita Bemhena will continue in her job, she will also become CEO at Gutta.

The merger of these two companies is a logical business development measure. After the reorganization, the companies' management, administration, and logistics will be merged and centralized, making the companies' operations more efficient and consolidating their brands on the local and international markets, explained Bemhena.

As reported, in December 2014 the Competition Council granted permission for acquisition of the NP Foods concern, which includes companies Gutta, NP Foods, Staburadze, Margiris, Detente, Laima, by the Norwegian group Orkla ASA.