COMPETITION COUNCIL ALLOWS UAB LUKOIL BALTIJA TO IMPLEMENT MERGERS OF ALREADY OWNED COMPANIES

On February 18, the Competition Council (the Council) allowed UAB Lukoil Baltija (Lukoil Baltija) to implement mergers of already owned petrol stations in Kaunas and Klaipėda.

On 18 April 2013, the Council imposed a fine of 1 177 600 LTL on Lukoil Baltija for implementing non-notified mergers of the aforementioned petrol stations and obligated the company to eliminate the infringement. With regard to these obligations, on 20 January 2014 the company notified the mergers.

Having evaluated all the circumstances related to the mergers, the Council acknowledged that the intended mergers will not create or strengthen the dominant position, or significantly restrict competition in the relevant markets.

Notes

(1) Mergers (Concentrations) are cases when two independent undertakings merge or when one undertaking gains control over another. As these changes may restrict effective competition in a relevant market, mergers involving firms that exceed turnover limits established in the Law on Competition must be cleared by the Council. The Council authorises only such mergers that will not have significant adverse effects on the conditions of competition.

(2) Control means any rights arising from laws or transactions that entitle a legal or natural person to exert a decisive influence on the activity of an undertaking, including the right of ownership to all or part of the assets of the undertaking or the right to use all or part of such assets; other rights which confer a decisive influence on the decisions or the composition of the undertaking’s personnel.