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

As the next phase in the development plan, the production operations would be transferred from the Riga plant to Jelgava within a year. On the basis of the contract approved by the Latvian Competition Board, Rigas Miesnieks acquired 90.85% of the shares of Jelgavas Galas Kombinats.

CEO of RLK Anne Mere stated that the main objective is to expand the two companies profitably and thus increase their market share on the Latvian meat products market. “Merging of sales and logistics operations of two strong meat processing industries will provide the merged company with efficiency and flexibility in order to fare better on the Latvian meat products market that has fallen significantly,” she explained.

The Latvian market of meat products has fallen by 5% in volume and by 12% in monetary value in the past year.

CEO of Rigas Miesnieks Juhan Matt stated that in comparison to the competitors, the enterprise has managed better.

Since the year 1997, Rigas Miesnieks, established in 1922, is a subsidiary of Rakvere Lihakombinaat (RLK) and is since the year 1998 a part of one of the biggest food corporations in the Nordic countries, the HK Scan Group. The parent company AS Rakvere Lihakombinaat includes the meat farming enterprise AS Ekseko in Estonia, Rigas Miesnieks in Latvia and Klaipedos Maisto Mesos Produktai in Lithuania.