COMPETITION COUNCIL TERMINATES EXAMINATION OF MERGER NOTIFICATION BY AXIS INDUSTRIES

On 4 February, the Competition Council (the Council) terminated the examination of merger notification wherein AB Axis Industries (Axis Industries) intended to acquire up to 100 per cent of UAB Elgamos grupė (Elgamos grupė) shares.

Examination of the merger notification was terminated because the Council’s experts did not establish any clear intentions of Axis Industies and Elgamos grupė to conclude sale and purchase agreements.

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.

(3) A merger notification must be submitted to the Council prior the implementation of a merger. The merger notification shall be submitted after the submission of the proposal to conclude an agreement or acquire shares or assets, an instruction to conclude the agreement, conclusion of the agreement, acquisition of the right of ownership or the right to dispose of certain assets. The merger notification may also be submitted in case of a good faith intention to conclude the agreement or to make a public bid to buy up shares.