Latvian Competition Council approves acquisition of Elagro Trade by Linas Agro

LATVIA — The Competition Council of Latvia has officially approved the acquisition of SIA Elagro Trade, a prominent Latvian grain, seed, crop protection, and fertilizer business, by SIA Linas Agro, an entity indirectly controlled by Lithuania’s AB Akola Group.

Established in 2010, Elagro Trade has grown to become a leading player in Latvia’s agribusiness sector, holding over 15% of the national grain market.

The company operates multiple grain receiving facilities and has regional offices throughout Latvia, positioning it as a key supplier within the country’s agricultural industry.

Linas Agro initially announced its agreement to purchase Elagro Trade in September for a preliminary price of €22 million (US$23.9 million). Elagro Trade’s net working capital will determine the final purchase price at the time of closing.

In response to the council’s decision, Mažvydas Šileika, chief financial officer of AB Akola Group, expressed satisfaction with the timely approval.

“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,” Šileika said.

He added that there is a strong likelihood that the acquisition will be completed within this calendar year.

Over the past two years, Akola Group has strengthened its foothold in Latvia, where it has operated since 2003.

Its subsidiary, SIA Dotnuva Seeds, is building a new seed factory in Iecava, Latvia, which is projected to be operational by mid-2025. This investment reflects Akola Group’s commitment to bolstering its role in Latvian agriculture.

Headquartered in Vilnius, Lithuania, AB Akola Group operates across the food production chain, including production, handling, and marketing of agricultural and food products.

The group, which also supplies goods and services to farmers, reported consolidated revenue of €1.5 billion (US$1.63 billion) for the financial year ending June 30.

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