AUTHORISATIONS TO IMPLEMENT CONCENTRATION DEALS

In its meeting the Competition Council examined the notifications on intended concentration and passed the decisions to authorise the concentration deals as notified.

1. The Competition Council decided to permit the Polish company Cersanit S.A. to implement the concentration deal by acquiring the 100 percent holding of another Polish company Opoczno S.A. The Competition Council assessed the concentration implemented by Cersanit S.A. as horizontal and vertical, causing a certain change in the degree of concentration in the markets, however, not causing the creation or strengthening of a dominant position in the relevant markets for retail and wholesale trade in ceramic tiles, or any restriction of competition in the markets concerned.

Cersanit S.A. operates as a parent company of several manufacturing enterprises, however it does not run any plants or subsidiaries in Lithuania. Undertakings domiciled in Lithuania and related to Opoczno S.A. are AB Dvarčionių keramika and UAB Baltijos keramika. As specified in the concentration notification the principal purpose of the concentration is to accelerate the expansion of the participating undertakings in foreign markets and step into an efficient competition with significantly larger manufacturers from Italy and Spain. The participating parties intend to maintain the autonomy of Cersanit S.A and Opoczno S.A. primarily with a view to preserving the proprietary trade mark and the good repute, in case of Cersanit S.A. – in the market of ceramic plumbing accessories, and for Opoczno S.A. – in the market for ceramic and stone tiles.

2. The Competition Council resolved to permit the concentration by UAB MG Valda by acquiring the 100 percent shareholding of UAB Timidus in accordance with the submitted notification. The competition authority established that the implemented concentration will not result in creation or strengthening of a dominant position or a significant lessening of competition in the relevant construction services market and the market of the real estate project development. The notification clearly specifies that the purpose of the concentration intended by UAB MG Valda is to invest into the real estate development business, and by acquiring UAB Timidus the investor will take over the real estate managed thereby.