Estonia, Legislation, Markets and Companies, Mergers and take-overs

The Competition Board said that Forum Cinemas submitted an application to give up the merger with the knowledge that otherwise the board would have made a forbidding decision. "The Competition Board could in no way allow the merger, as the result of which competition would be seriously damaged," said the Board's director general Märt Ots. "If the merger had been allowed, a cinema monopoly would have emerged in Tallinn that would not be in the interests of consumers." The two cinemas are the only multiplex cinemas in Tallinn.

Forum Cinemas says that the only reason for giving up the deal was the strong opposition of the Competition Board to the transaction.

Forum Cinemas Baltic States manager Kristjan Kongo said however that the company continues to be interested in expanding activities in Estonia. "We have decided to choose another path to implement our plans," said Kongo, adding that Forum Cinemas intends to open at least one new cinema centre in Tallinn in the coming years.

Forum Cinemas announced of plans to buy Solaris Kino this July.