Latvia, Legislation, Markets and Companies, Mergers and take-overs, Retail

''This month will be a huge month of change for us. We will be making changes, as well as replacing and making new advertisements,'' Hupenija explained.

As reported, this past February, the Competition Council authorized acquisition of the "Iki" chain stores in Latvia, by the Mego retail trade company.

The Competition Council has concluded that the merger will not impact competition and the merged company will not have the dominant position in the retail trade market of Latvia.

The total market share of Mego and Palink in Latvia is under 10 percent, notes the Competition Council. Furthermore, in the cities where the two companies have their stores (Riga, Jurmala, Ventspils, Liepaja) they face strong competition and have to compete with market players who have significantly larger market shares – Rimi Latvia and Maxima Latvija.

According to the sales agreement, 51 "Iki" stores will become retail outlets of Mego.

The company operating the "Iki" chain stores is one of the largest food retailers in Latvia. The company has been present in Latvia for nine years. In 2013, the company had 51 stores and employed more than 900 people.

On the other hand, Mego is one of the largest retail trade companies in Latvia, in business since 1999. Mego runs a total of 36 stores and employs more than 600 people. The company has stores in various cities and towns of Latvia: Riga, Aizkraukle, Baldone, Bauska, Broceni, Cesis, Jekabpils, Jurmala, Sauriesi, Liepaja, Talsi, Tukums, Valka and Ventspils. A total of 53 stores in Latvia operate under the Mego brand.