Foodstuff, Latvia, Legislation, Markets and Companies

The deal will be examined by the Competition Council. Following the deal, both companies will continue to operate separately, writes LETA.

According to data from the market and advertising research company Nielsen, Rigas miesnieks has 22% of the market, while Jelgavas galas kombinats has 5.7%.

Rigas miesnieks was founded in 1922 in Riga. Since 1998, the company has been part of the Finnish concern HKScan, which is one of the main food production companies in Northern Europe, and one of the leaders in the Polish, Swedish, Baltic States and Polish markets. Apart from Rigas miesnieks, the Baltic States group of HKScan also includes the Estonian companies Rakvere Lihakombinaat, Ekseko, and Tallegg, as well as the Lithuanian firm Klaipedos Maisto Mesos Produktai.

Over the last three years, the meat product market share of Rigas miesnieks has grown by 6%, reaching a 22% share of a highly competitive market featuring more than 50 companies. The company has 190 employees, and produces more than 200 different meat products. The most significant product category for Rigas miesnieks is sausages, where the company holds a 48% market share.