RIGA, LATVIA — The Competition Council of Latvia has approved the acquisition of SIA Elagro Trade, a grain, seed, crop protection and fertilizer business, by SIA Linas Agro, an indirectly controlled company of AB Akola Group.
Operating since 2010, Elagro Trade is one of Latvia’s leading agribusinesses with more than 15% of the country’s total grain market, and grain receiving facilities and regional offices across the country, Linas Agro said.
Initially announced in September, Linas Agro agreed to buy Elagro Trade for a preliminary price of €22 million ($23.9 million), with the final price subject to the net working capital of Elagro Trade at the closing date.
“Our optimistic forecast has come true; we were expecting the decision of the Competition Council of the Republic of Latvia at the end of October,” said Mažvydas Šileika, chief financial officer, AB Akola Group. “There is a strong likelihood that the acquisition will be completed within this calendar year.”
Over the past two years, Akola Group said its subsidiaries have been strengthening their position in Latvia, where the group has been operating since 2003. Seed production company SIA Dotnuva Seeds is building a seed factory in Iecava, Latvia, which should be operational by mid-2025.
Based in Vilnius, Lithuania, AB Akola Group operates throughout the food production chain, producing, handling and marketing agricultural and food products, as well as supplying goods and services to farmers. The group reported consolidated revenue of €1.5 billion ($1.63 billion) during its most recent financial year, which ended June 30.
