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

"We probably stand a few chances of changing the opinion. If we won in the 2nd instance (a court of higher instance), it would mean that everything is going to the starting point – we would have to apply again and have no guarantees that the Competition Council gives a positive answer. The marathon cannot continue," Viking Malt executive director Darius Vilkas told BNS Lithuania.

On Monday, a Vilnius court rejected the complaint filed by Viking Malt, which asked to cancel the competition watchdog's finding, Sigita Jacineviciene-Baltaduone confirmed to BNS. In its refusal to sanction the deal last October, the council stated that the deal would undermine the competition on the pilsen malt market, possibly driving beer prices higher.

Vilkas stated that the Finnish concern had already directed the investments, which were originally intended for Maltosa's acquisition, to Denmark and Poland, buying malt production companies there.

"In Lithuania, we will simply continue our operations and pursue organic expansion, whenever possible. We are making moderate investments in container loading operations, which opens broader export markets to African and Asian countries," said the CEO of Maltosa, which exports 70 percent of its output.

The value of the deal between Viking Malt and Maltosa was reported to amount to several tens of millions of euros.

Finland's Viking Malt has three malt factories, in Lithuania, Finland and Sweden. The Lithuanian factory's biggest customers include global beer producers, such as France's Castel and South Africa's SABMiller, which is being taken over by Belgium's InBev, as well as Denmark's Carlsberg Group and Finland's Olvi.