GORNYE VERSHINY/ARKHYZ TRANSACTION WILL BE APPROVED IF OBLIGATORY CONDITIONS ARE MET

The requirements of the authority are aimed at maintaining competition in the relevant markets

Currently, a competition is being held for the purchase of the Arkhyz resort in the Karachay-Cherkess Republic. As a result of the transaction, the acquirer will be able to carry out business activities in the market of passenger transportation by funiculars, suspended cable cars and ski lifts that are not part of urban and suburban transport systems.

Among the investment conditions for the acquisition is a multiple increase in the number of trails and lifts. The acquiring company may include personal construction costs in the ticket price.

In this regard, FAS Russia approved the application of the company Gornye Vershiny to obtain prior consent for the purchase of the Arkhyz resort with the instructions. In the case of implementation the deal, the potential acquirer is required to coordinate with the antimonopoly authority decisions on raising prices for the service by more than 5 % during the year with the provision of an economic justification for such an increase.

The remedies are valid for five years from the date of the declared transaction. Its non-fulfillment entails administrative liability (1), and is also the basis for invalidation of the transaction in court on the claim of the antimonopoly authority (2).

For reference:

(1) Part 2.3 of Article 19.5 of the Code of Administrative Offences of the Russian Federation

(2) Part 5 of Article 34 of the Law on Protection of Competition