On 14 March, the Competition Council of Latvia (the CC) adopted a decision according to which it allows two mutually related transactions – for the groups W.P.Carey and Kesko Oyj to gain joint decisive influence over UAB “Baltic Retail Properties” and indirectly over three companies registered in Latvia – SIA “K Prof”, SIA “Polo LS” and SIA “Daugavkrasts M”. The CC adopted a positive decision, because no harm will be caused to competition with these transactions.
The companies have provided information in the merger notification, that the transaction will result in the change of control structure over the acquired companies – from unilateral control by Kesko group to joint control implemented by several companies.
As a result of the first transaction, a part of assets of UAB “Baltic Retail Properties” will be sold – 70% of capital shares will be sold to the company CPA 17 Pan-European Holding Coöperatief U., owned by W.P.Carey group and registered in the Netherlands, whereas 10% of capital shares will be sold to the company SIA “Kesko Real Estate Latvia”, owned by Kesko Oyj group. The remaining 20% of capital shares will be retained by Wabashi B.V., Nunica Holdings B.V. and Genopas B.V.
The second transaction will result in UAB “Baltic Retail Properties” acquiring SIA “K Prof” and SIA “Polo LS” from SIA “Kesko Real Estate Latvia” through mediation of the newly-established subsidiary. In addition, the company will also acquire the company SIA “Daugavkrasts M”, indirectly owned by Kesko Oyj