COMPETITION COUNCIL CLEARS ACQUISITION OF AB LIETUVOS DRAUDIMAS BY PZU S.A., SUBJECT TO CONDITIONS

On 9 October, the Competition Council (KT) cleared the acquisition of 100 per cent of AB Lietuvos draudimas shares by PZU S.A. The merger was cleared upon the condition that PZU S.A. would sell the part of its business related to the activities carried out in Lithuania within two markets: the market of the insurance of land vehicles, except for railway vehicles, and the market of property insurance. The KT agreed to appoint UAB PricewaterhoiseCoopers as a fiduciary who will observe and evaluate whether PZU S.A. fully meets the conditions and fulfils the obligations imposed by the KT.

Having assessed the intended merger, the KT found that the merger would restrict competition within the aforementioned markets. To address the KT’s concerns, on 12 September, PZU S.A. submitted merger remedies.

Insurance companies, the Central Bank of the Republic of Lithuania and other stakeholders expressed their grounded opinions on the proposed remedies.  Having regard to the expressed opinions, PZU S.A amended and re-submitted the remedies to the KT.

The authority determined that the amended remedies are sufficient enough to remove competition concerns and cleared the merger.