Circle K Latvia and โAstarte-Nafta Merger: A Strategic Move in Latviaโs Fuelโ Retail Sector
Theโข Latvian fuel retail sector is โwitnessing a significantโ development as Circle K Latvia and Astarte-Nafta have โขsubmitted a joint report toโข theโ Competition Council (CP) regarding the sale of 26 astarte-Nafta gas stations to Circle K Latvia. โคThisโข transaction,โ pending โคapproval from the Competition Council, could reshape the competitive landscape of the industry.โ
If approved, Circleโ K Latvia plans to โฃcontinue fuel retail operations at the acquired stations, further solidifying its presence in the market. This move comes after โฃthe Competition Council previously allowed Circle K Latvia to purchase anโ Astarte-Nafta gas station on โ Krasta Street, Riga, inโ September 2023. The โฃcouncil concluded that the merger would notโ significantly alter market โstructure or reduce competition, norโ would it create orโ strengthenโค aโค dominant position inโ any Latvian market.โ โฃ
Ojฤrs Karฤevskis, Chairman โฃof theโ Board of Astarte-Nafta, highlighted the intense โcompetition in Latviaโs fuel retail โคsector. He noted that regional reforms haveโฃ shifted focus โfrom rural areas toโ cities, particularly larger ones.โThere is a need for โขpermanent investment and innovation to drive growth,โ Karฤevskis emphasized, underscoring the challenges and opportunities in the industry.
The financial performance of both companies provides context for this transaction.โข Astarte-Nafta โข reported aโ turnover of EURโ 65.131 million in 2023, a 10.2% decrease from the previous โyear, alongside a loss of EUR 401,504.โ In contrast, Circle K Latvia saw a turnover of EUR 575.97 million in the financialโ year ending April 30, 2024,โฃ a 7.2% decline year-on-year, but its profit โsurged by 71% to EUR โ13.392 million.โค
| Key Metrics โค โฃ | Astarte-Nafta | Circle K Latvia | โฃ
|————————–|————————-|————————-|
| Turnover (2023) โ | EUR 65.131 million | EUR 575.97 โmillion |
| Profit/Loss (2023) | Loss ofโค EUR 401,504โค | Profit of EUR 13.392M โข|โ
| Year Established โ | 1995 โฃ โ โฃ | 1992 โ โค |
| Share Capital โ โข | EUR 31,240 โ โ โ | EUR 27.564 millionโ โค |
Astarte-Nafta,registered in 1995,is ownedโฃ by Jฤnis Anspoks (92.73%) and Lฤซgita Dzene (7.27%). Simultaneously occurring,circle K Latvia,established โin 1992,is owned โby Norway-based Circle K.
This โฃmerger reflectsโข the evolving dynamics โคof Latviaโs fuel โretail sector, โdriven by competition,โค regional reforms, and the need for โinnovation. As the Competition Council โขdeliberates, stakeholdersโ await a decision that could mark a new chapter โfor both companies.for โขmore insights into the Latvian fuel retail market, explore the latest updatesโข on โ Circle K Latvia and Astarte-Nafta.