KAUNO LIFTAI HAS PROPERLY FULFILLED ITS COMMITMENTS
The Competition Council has recognised that Kauno liftai has properly implemented its commitments by selling a part of the acquired business and thus restoring effective competition in the markets for maintenance, repair, and replacement of lifting equipment in Lithuania.
In July 2023, the Competition Council granted permission to the company Kauno liftai to proceed with a concentration by acquiring 100% of the shares of companies Baltijos liftai and Šiaulių liftas, subject to certain commitments. These commitments included transferring the contracts for maintenance and (or) repair services of Baltijos liftai and Šiaulių liftas elevator installations in Panevėžys, Utena, and Kaunas regions to the third parties. Additionally, Kauno liftai was to handle the maintenance of the elevators older than 25 years and replacement of the elevators not installed by them in Vilnius region.
The fulfilment of the above-mentioned commitments was supervised by the team of the trustee, which provided the Competition Council with an opinion and assessment on the candidates for purchasing the business to be divested and other conditions for the implementation of the commitments and monitored the negotiation process with the potential buyer.
Having assessed the reports and other information provided by the trustee, the Competition Council concluded that Kauno liftai had duly fulfilled its obligations by transferring the planned part of the business to the buyer – Paradis. The latter took over the assets, rights and liabilities separated from Baltijos liftai, Šiaulių liftas and Kauno liftai, based on which two new companies, Šiaurės projektas and Sostinės projektas, were established.
Please be reminded that in May 2022, the Competition Council decided to apply the merger control procedure on its own initiative and obliged Kauno liftai to submit a notification on the transaction in May 2021, when 100% of the shares of Baltijos liftai and Šiaulių liftas were acquired. As the combined gross revenues of the above companies in 2020 did not exceed the threshold of EUR 20 million provided under the Law on Competition, Kauno liftai was not required to notify the proposed concentration and obtain a clearance from the Competition Council.
