Agriculture, Investments, Latvia, Legislation, Lithuania, Markets and Companies, Mergers and take-overs

"Without acquisitions, development in this area is very limited, as the Lithuanian market is hardly growing, and the annual growth in Latvia is expected to be more than 2 percent (…). We do not see reasons to stop expanding," Linas Agro Group CEO Darius Zubas said in a press release.

In his words, the company that entered Latvia in 2003 has made substantial expansions over the past five years, purchasing poultry companies in 2013 and 2014, opening a grain storage utility in the city of Jekabpils in 2015. In the 2015-2016 financial year, the group plans to sell about 200,000 tons of fertilizers, including up to 40,000 tons in Latvia.

Via the Nasdaq Vilnius stock exchange, Linas Agro Group announced having received a sanction from the Latvian Competition Council to take over Paleo running a business of warehouses, while Latvia's Linas Agro said it was allowed to take over the fertilizer trade business and trademark from Latvia's Latfert.

In the second year after the takeover, the annual fertilizer trade volume is expected to reach 90,000 tons in Latvia. The two companies sold 62,000 tons of fertilizers in 2015.