Permission for concentration

| Source: Luterma Luterma 

AS Kalev Paide Tootmine received 29.09.2008 a resolution of the director
general of the Competition Board dated 26 September 2008 whereby the
Competition Board gave permission for concentration of AS Kalev Paide Tootmine
and OÜ Põlva Piim Tootmine. 

AS Kalev Paide Tootmine entered into a contract of sale of shares on 27 August
2008 for acquiring shares in OÜ Põlva Piim Tootmine. One precondition for the
entry into force of the contract was obtaining permission from the Competition
Board. 

In granting permission for concentration, the Competition Board was of the
position that it is not possible for the participants in the concentration to
take part in buying raw milk, or on the markets for sale of refined milk
products, butter and butter blends and powders independently of its
competitors, buyers and suppliers, as a result of which competition will
continue after the concentration as well. The concentration will not create a
dominant position for the purposes of the Competition Act either in raw milk
supply or in the commercial markets for refined milk products, butter and
butter blends or powders. 



Allan Viirma
Head of the legal service
AS Kalev

688 6616