On 21 July 2023 the Competition Authority authorised the concentration of AS Maag Grupp and AS HKScan Estonia, AS HKScan Latvia and UAB HKScan Lietuva on the condition that the parties to the concentration perform their obligations. The notice of concentration was submitted to the Competition Authority on 30 January 2022 and on 27 January 2023 under decision No 5-5/2023-004 supplementary concentration proceedings were initiated.
The parties to the concentration are undertakings that have a very strong position in the production and sale of meat products in Estonia which offer a wide variety of meat products and have well-known brands. AS Maag Grupp and AS HKScan Estonia are both involved in the production of meat products. AS Maag Grupp markets its products under the Rannamõisa and Rannarootsi trademarks, and AS HKScan Estonia owns the Tallegg and Rakvere trademarks.
As a result of the proceedings, the Competition Authority came to the conclusion that the concentration of AS Maag Grupp and AS HKScan Estonia does not significantly restrict competition in the production and sale of fresh white meat and processed meat products. Pursuant to the Competition Act, the Competition Authority may grant permission to concentrate if the parties to the concentration assume obligations to avoid restriction of competition. AS Maag Grupp proposed assuming obligations. AS Maag Grupp will transfer in two stages its current business activities in the production and sale of meat products – AS Rannarootsi Lihatööstus and chicken products marketed under the Rannamõisa trademark. Due to the obligations, the concentration will not permanently change the market structure and the concentration of the business activities of AS Maag Grupp and AS HKScan Estonia.
AS Maag Grupp has complied with its reporting obligation and, as of March, neither the undertaking’s Rannamõisa share nor Rannarootsi Lihatööstus AS have yet been transferred.
The Competition Authority supervises the concentration of undertakings if the parties’ total turnover of the previous financial year in Estonia exceeds 6,000,000 euros and the turnover of at least 2 concentration parties in Estonia exceeds 2,000,000 euros each. The turnover of a party to the concentration is calculated based on the Guidelines for Calculation of Turnover of Parties to Concentration, established by Regulation No 68 of the Minister of Economic Affairs and Communications of 17 July 2006.