KT TERMINATES THE INVESTIGATION ON MERGER RELATED ACTIONS OF SWEDBANK

On 19 September 2013, the Competition Council (Konkurencijos taryba, KT) terminated the investigation on merger related actions of the bank Swedbank AB(the Bank).

Having received the information provided by PLASS INVESTMENT LIMITED, the KT launched an investigation on a possibly non-notified merger implemented by the Bank.  

PLASS INVESTMENT LIMITED (the Complainant) is a minority shareholder of the Company group Alita, AB. According to the Complainant, having concluded a credit agreement, the Bank implemented a merger of AB Alita and the Company group Alita, ABand, thus, acquired the right to control business operations of the companies, the appointment of their leader and the disposition of their assets.

According to the concluded credit agreement, the Bank could receive the information about the intended business operations of the companies with the aim of monitoring the companies’ financial condition and, thus, managing the credit risk.

Having evaluated all the circumstances related to the allegedly implemented merger, the KT determined that by concluding the credit agreement with AB Alita and the Company group Alita AB and by implementing its provisions the Bank performed a common credit risk management and did not have any possibilities to decisively influence the activity of these companies or acquire control over them.

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 KT. The KT 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.

Communication Division