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Sorainen Obtains Approval of Insurance Company Merger

Latvia
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Sorainen announced that on May 29, 2014, the Latvian Competition Council approved the merger of the Polish Powszechny Zaklad Ubezpieczen (PZU) and the Latvian Balta insurance companies.

According to a statement released by the Sorainen, "approval was granted since the concentration in the non-life insurance services market will not change significantly as a result."

PZU will acquire control over Balta through the merger. The acquisition of Balta’s shares is part of PZU’s international expansion plan, as the company wants to widen its territory of operation in the Baltic States. As stated in the merger notification, by acquiring Balta’s shares, PZU intends to become one of the biggest insurance market players in Latvia.

The Competition Council decided that as there are several other strong competitors in the Latvian insurance market, and PZU’s market share is small, the changes in the concentration of the Latvian non-life insurance services market due to the change should be insignificant.

PZU provides life and non-life insurance services and administers pensions, mutual investment funds, and saving programmes. PZU acquired Balta’s assets from the British and Welsh company Royal & Sun Alliance. Sorainen reports that PZU expects to take over insurance providers in both Lithuania and Estonia from Royal & Sun Alliance as well (reported on by CEE Legal Matters on April 18, 2014, and May 8, 2014.

PZU was represented by Sorainen Partner Ieva Azanda and Senior Associate Ieva Andersone.

 

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