Alcohol, Baltic States – CIS, Latvia, Legislation, Markets and Companies, Mergers and take-overs

The Competition Council has authorized the deal as it is not expected to have a serious negative impact on competition. 

"The operations of Amber Beverage Group Holding's companies in Latvia involve mainly alcohol production, wholesale of alcoholic and non-alcoholic beverages, including beer, as well as selling said beverages in retail trade. The operations of Lido, meanwhile, involve provision of bar, restaurant and catering services, distribution of food products, including beer, and retail trade. 

"The takeover deal will affect the beer distribution and retail market in which Amber Beverage Group Holding and Lido have small shares, and the concentration of the companies' operations will be insignificant. At the same time, the Competition Council did not find the takeover's impact on the wholesale market of strong alcohol, where Lido buys a small amount of alcoholic beverages from a company of Amber Beverage Group Holding," the Competition Council said. 

Upon assessing the information provided by the company and in the Council's disposal, the competition watchdog concluded that the takeover will not change competition conditions on the beer distribution and retail market, it will not limit competition or lead to a dominant position, and Amber Beverage Group Holding will not boost its position on the wholesale market of strong alcohol.  

As reported, Amber Beverage Group Holding wants to acquire a 49 stake in Lido. 

Even though Amber Beverage Group Holding will not have a controlling stake in Lido, the parties plan to agree that Amber Beverage Group Holding will have the rights to appoint two members to the company's supervisory board. Also, Amber Beverage Group Holding might have veto rights on strategical decisions.

Lido board chairwoman Rita Auzina told LETA that Lido shareholder Gunars Kirsons does not plan to sell a controlling stake in the company.

LETA also reported, in 2018 Lido posted EUR 41.883 million in sales, up 8.5 percent from a year ago, while the company's profit shrank 7.3 times to EUR 241,365.

Lido was registered in 1991, and has a share capital of EUR 1.292 million. The company's beneficial owners are Gunars Kirsons and Russian national Vladimir Shestakov who owns VSh Holding.

Amber Beverage Group is a leading producer, distributor, logistics provider and retailer of beverages. It operates internationally from its head office in Luxembourg and through its production and distribution companies in Russia, Mexico, the UK, Austria, Australia and the Baltics, its historical home. Latvijas Balzams distillery also is a part of Amber Beverage Group.