THE TRANSACTION GLACEM/KVINTA IS POSSIBLE IF THE PRINCIPAL CONDITIONS ARE FULFILLED

The analysis of the state of competition in the market of standard cement showed that in the case of the transaction stated in the application, the aggregate share of the group of persons of the companies GlaCem and Kvinta in the North-Western Federal District will exceed 35%. According to FAS, the transaction will lead to GlaCem dominant position in the market of standard cement in the geographical boundaries of the district.

In order to ensure competition in this market, the authority approved the application only if the requirement of FAS providing for a number of restrictions is fully implemented.

Thus, GlaCem and its legal successors need to ensure the fulfillment of all existing contracts and the preservation of the technological capability of production. In addition, the company is obliged to inform FAS quarterly about the main performance indicators. If product prices increase by more than 5% in a month, GlaCem will have to justify such an increase in the written form.

Within four months after the transaction, the company must develop, approve and submit to FAS trade and sales and pricing policies, follow them and warn the authority about changes. The company is also prohibited from infringing on the rights of its counterparties when concluding contracts for the supply of manufactured goods.

FAS notes that the decision to grant the application is valid only in conjunction with the order.

The requirement of FAS will be valid for five years from the date of the transaction. Failure to comply with its conditions entails an administrative fine and may become the basis for invalidating the transaction at the request of the antimonopoly authority.

It should be noted that at the moment, in order to ensure competition in the market of standard cement in the territory of the North-Western Federal District, a similar requirement of the FAS Russia applies to a group of persons of EUROCEMENT GROUP JSC.