Circle K Latvia and Astarte-Nafta Merger: A Strategic Move in Latvia’s Fuel Retail Sector
The Latvian fuel retail sector is witnessing a significant development as Circle K Latvia and Astarte-Nafta have submitted a joint report to the Competition Council (CP) regarding the sale of 26 astarte-Nafta gas stations to Circle K Latvia. This transaction, pending approval from the Competition Council, could reshape the competitive landscape of the industry.
If approved, Circle K Latvia plans to continue fuel retail operations at the acquired stations, further solidifying its presence in the market. This move comes after the Competition Council previously allowed Circle K Latvia to purchase an Astarte-Nafta gas station on Krasta Street, Riga, in September 2023. The council concluded that the merger would not significantly alter market structure or reduce competition, nor would it create or strengthen a dominant position in any Latvian market.
Ojārs Karčevskis, Chairman of the Board of Astarte-Nafta, highlighted the intense competition in Latvia’s fuel retail sector. He noted that regional reforms have shifted focus from rural areas to cities, particularly larger ones.“There is a need for permanent investment and innovation to drive growth,” Karčevskis emphasized, underscoring the challenges and opportunities in the industry.
The financial performance of both companies provides context for this transaction. Astarte-Nafta reported a turnover of EUR 65.131 million in 2023, a 10.2% decrease from the previous year, alongside a loss of EUR 401,504. In contrast, Circle K Latvia saw a turnover of EUR 575.97 million in the financial year ending April 30, 2024, a 7.2% decline year-on-year, but its profit surged by 71% to EUR 13.392 million.
| Key Metrics | Astarte-Nafta | Circle K Latvia |
|————————–|————————-|————————-|
| Turnover (2023) | EUR 65.131 million | EUR 575.97 million |
| Profit/Loss (2023) | Loss of EUR 401,504 | Profit of EUR 13.392M |
| Year Established | 1995 | 1992 |
| Share Capital | EUR 31,240 | EUR 27.564 million |
Astarte-Nafta,registered in 1995,is owned by Jānis Anspoks (92.73%) and Līgita Dzene (7.27%). Simultaneously occurring,circle K Latvia,established in 1992,is owned by Norway-based Circle K.
This merger reflects the evolving dynamics of Latvia’s fuel retail sector, driven by competition, regional reforms, and the need for innovation. As the Competition Council deliberates, stakeholders await a decision that could mark a new chapter for both companies.for more insights into the Latvian fuel retail market, explore the latest updates on Circle K Latvia and Astarte-Nafta.
