(updates)

Riga, Sept 2 (LETA) - Cesu Alus group will acquire 100 percent of Valmiermuizas Alus brewery's shares, Valmiermuizas Alus informed LETA.

Valmiermuiza, a craft brewery established in 2005, has a share capital of EUR 1.397. The company is currently solely owned by Valmiermuizas Investment Fund, in which Rungis has a 60 percent stake, the Austrian investment fund Industrieliegenschaftenvervaltungs AG has a 24 percent stake and MVF40 Beteiligungs GmbH, registered in Austria, has a 16 percent stake.

The company explained that the relevant report will be submitted to the Competition Council. Valmiermuizas Alus' merger with Cesu Alus will be finalized once the Competition Council's permission has been received.

The company would not disclose the price of the transaction.

Until then, Valmiermuizas Alus will continue to brew and supply beer and non-alcoholic beverages to customers under the management of its current co-owner Aigars Rungis, the company said. Later, Rungis will advise the company's new management, so that Valmiermuizas Alus recipes are preserved, the company said.

Valmiermuizas Alus explained that the purpose of the transaction is to continue brewing craft beer at Valmiermuiza and to develop the export potential of the Valmiermuiza brand.

"Although this is the best year ever for Valmiermuizas Alus, we are aware that we are operating in an unfriendly business environment for small and independent brewers in Europe, which last year already resulted in Latvia ranking last in the European Union in terms of beer production. This makes it very difficult for Latvian brewers to grow, invest and compete at European level," said Rungis.

As reported, Valmiermuizas Alus turnover in 2024 was EUR 10.018 million, while the company's profit was EUR 65,858.

Cesu Alus, in turn, had a turnover of EUR 101.133 million in 2024, which is 1.1 percent less than a year earlier, while the company's profit increased by 4.4 percent and amounted to EUR 3.564 million.

Cesu Alus was registered in 1991 and has a share capital of EUR 8.31 million. Cesu Alus is majority owned by the Finnish group Olvi (99.88 percent).