Estonian dairy firm Tallinna Piimatoostus has said that it now controls 50% of the country’s dairy market, following the acquisition of dairy firm Meieri Tootmise.
Last week the companies signed an agreement for the takeover of Meiri Tootmise that was subsequently approved by the competition authorities, making Tallinna Piimatoostus Estonia’s largest dairy firm.
The Meieri Tootmise plant is expected to need an investment of around 2.5m kroons (US$156,600) to bring it in line with EU requirements. The Tallinn plant reportedly already conforms to EU standards.
For the first half of this year, Meieri Tootmise reported turnover of 107.6m kroons and a profit of 3.9m kroons. Tallinna Piimatoostus reported turnover of 212m kroons and zero profit.
Tallinna Piimatoostus’ main competitor is now Finnish Valio subsidiary Laeva Meierei with a market share of over 20%, reported the ETA Economic Bulletin.