Scandinavians are allowed to buy tire companies in the Baltics

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The CC did not find any significant harm to competition, so it decided to allow the transaction.

The core business of AB “Nordic Tire Group” is tire wholesale in Finland, Sweden, Norway and Latvia. The main activity of SIA “Latakko” is the import and wholesale of tires, discs, batteries and engine oil in Latvia. The main activities of SIA “Latakko Serviscentru tīkls” are retail sale of tires, engine oils, batteries and other engine accessories, as well as repair services of motor vehicles in Latvia. UAB “Latakko” and OÜ “Latakko” do not perform economic activities in Latvia.

Thus, the market affected by the merger is the wholesale market for new spare passenger car tires in Latvia. Evaluating the information provided by market participants and at the disposal of the CC, the CP concludes that the merger will not significantly reduce competition and will not create or strengthen a dominant position in the affected market in Latvia, where the merging parties operate. The merger is therefore permissible.

In order to prevent a significant reduction of competition as a result of a merger, merger transactions that comply with the criteria specified in the Competition Law require the permission of the CC. Thus, the CC ensures state control over the concentration of markets so that no structural changes occur, as a result of which consumers have limited options in the long run or have to purchase goods and services at an uncompetitive price.

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