MERGER WITH CONDITIONS: FAS APPROVED “LSR. STENOVIE” AND “N+N” MERGER

The company must make investments to develop competition in the North-West Federal District

The Federal Antimonopoly Service approved a petition of “LSR.Stenovie” on acquiring 100% share of the registered capital of “N+N” Ltd. At the same time, FAS issued an order to “LSR.Stenovie” that it must fulfill a number of obligations aimed at developing competition on the market of gas-concrete blocks in the North-West Federal District.

An analysis of the state of competition showed that after the merger, “LSR.Stenovie” Ltd. will have the dominant position on the market of gas-concrete blocks within the boundaries of the regions in the North-West Federal District. Making the decision, FAS took into consideration potential competition of gas-concrete blocks with other types of wall materials.

Nelli Galimkhanova, Head of FAS Industry Control Department explained: “When FAS was making the decision whether the merger should be approved, the corporate plans designed to increase competitiveness of Russian-made goods on the world market played the key role. They can be achieved, for example, through expanding the assortment of products and the geography of supplying gas-concrete blocks to Finland and the Baltic States”.

In line with the order, “LSR.Stenovie” Ltd. must execute the undertaken obligations to make investment, particularly, in manufacturing new types of gas-concrete products.