KP has not identified significant harm to competition, so the transaction is allowed.
The activities of the companies of the Amber Beverage Group Holding Group in Latvia are mainly related to the production of alcoholic beverages, wholesale of alcoholic and non-alcoholic beverages, including beer, as well as retail trade of the mentioned beverages. Lido, on the other hand, is involved in the provision of bars, restaurants, catering services, the distribution and retailing of food products, including beer.
“The merger will thus affect the beer distribution and retail market, where both Amber Beverage Group Holding and Lido have small market shares and the concentration will be negligible. At the same time, KP did not find the impact of the merger on the wholesale spirits market. under which Lido purchases a small amount of alcohol from an Amber Beverage Group Holding group company, “said KP.
Assessing the information provided by the company and available to KP, the competition supervisor has concluded that the merger will not change the competitive conditions in the beer distribution and retail markets, reduce competition, create a dominant position or strengthen Amber Beverage Group Holding’s position in the spirits wholesale market.
It has already been reported that Amber Beverage Group Holding wants to buy a 49% stake in Lido.
Although Amber Beverage Group Holding will not acquire a controlling interest after the transaction, the parties to the transaction are considering making changes to Lido’s Articles of Association so that Amber Beverage Group Holding will have the right to appoint two representatives to the Board. In addition, Amber Beverage Group Holding could gain the right to veto strategically important decisions. Following the transaction, Amber Beverage Group Holding could acquire the right to unilaterally manage Lido.
Rita Auziņa, the chairman of the board of “Lido”, previously told LETA that “Lido” shareholder Gunārs Ķirsons does not plan to sell the controlling share of the company.
It is also reported that in 2018, Lido had a turnover of 41.883 million euros, which is 8.5% more than a year earlier, but the company’s profit decreased 7.3 times and amounted to 241,365 euros. The company’s financial results for 2019 have not been published yet.
Lido was registered in September 1991 and has a share capital of 1.292 million euros. The real beneficiaries of the company are Kirsons and Russian citizen Vladimir Shestakov, who owns the holding company SIA “VSh Holding”.
Amber Beverage Group is an international alcohol production and distribution group operating from its headquarters in Luxembourg, as well as through production and distribution companies in Russia, Mexico, the United Kingdom, Australia, Austria and the Baltics. Amber Beverage Group also includes Latvijas balzams. Amber Beverage Group is owned by billionaire Yuri Sheffler.