Beverage producer A. Le Coq signed a purchase agreement to acquire all shares of Värska Originaal in September last year. At the time the buyer expressed hope that the transaction would be completed in the first quarter of 2026, once the Competition Authority had approved the deal.

When beginning its analysis, the Competition Authority said that the merger of A. Le Coq and Värska Originaal would affect the Estonian market for the production and sale of soft drinks and bottled water.

Last week, the Competition Authority said it had granted A. Le Coq permission to acquire a controlling interest in Värska Originaal on the condition that the parties fulfill the commitments they have undertaken.

However, the transaction is on hold again after Saku Õlletehas filed a request with the administrative court for interim legal protection and the court granted it for 30 days.

"Saku Õlletehas requested interim legal protection so that the merger could not take effect or the companies be integrated before the dispute is finally resolved," Administrative Court Press Representative Jaanika Maasik said.

Saku Õlletehas CEO Jaan Härms justified turning to the court by saying competition should not be significantly harmed and no one should gain a dominant market position, but that this transaction would give such a position to A. Le Coq.

A. Le Coq Managing Director Jaanus Vihand wrote ina statement on the company's website that the move is unjustified.

"The Competition Authority has analyzed the transaction for a long time and in depth and has approved it. In our opinion, the request to suspend the transaction is unfounded. We believe the court will make a fair decision that will allow the transaction process to be completed," Vihand said.

He added that the goal of the transaction is to expand A. Le Coq's non-alcoholic beverage portfolio to strengthen the company's competitiveness, especially in international markets.

The Competition Authority reviews mergers when the parties' combined turnover in Estonia during the previous financial year exceeds €6 million and at least two of the merger participants each have turnover in Estonia exceeding €2 million.

A. Le Coq is under the sole controlling influence of Olvi Oyj and thus part of the Olvi Group. Shares of Olvi Oyj are listed on the Nasdaq Helsinki. Saku Õlletehas, meanwhile, belongs to the Carlsberg Group.

--

Follow ERR News on Facebook and Twitter and never miss an update!