Forum Cinemas cleared to acquire the Akropole Alfa cinema

Forum Cinemas has received clearance from the Competition Council to acquire the multiplex cinema at Riga’s Akropole Alfa shopping centre, until now operated by Cinamon. The decision allows Forum Cinemas to strengthen its presence in the Latvian market and to continue operating the venue as a modern cinema destination for Riga audiences.

“We are proud to have advised Forum Cinemas on this landmark clearance. The Competition Council grounded its assessment in a genuine counterfactual analysis – looking beyond the headline market shares to how the market would realistically have developed in any event. The decision is an important milestone for merger control in Latvia and an excellent result for our client,” comments Liga Merwin, Managing Partner and Head of the EU & Competition practice at Ellex in Latvia.

Ellex in Latvia advised Forum Cinemas on the transaction from end to end – negotiating and signing the long-term lease agreement for the Akropole Alfa premises, and then guiding the client through the merger review before the Competition Council, including the notification and the subsequent in-depth (second-phase) proceedings. The clearance is notable as one of the few Latvian merger decision in which the Council based its assessment on an in-depth counterfactual analysis, allowing the transaction notwithstanding a high combined market share and a highly concentrated market.

The Ellex in Latvia team was led by Managing Partner Liga Merwin (merger control), and included Iveta Ceple (lease agreement ) and Samanta Lidere (merger control).