LITHUANIAN COMPETITION AUTHORITY WILL REVIEW TRANSACTION BETWEEN KAUNO LIFTAI AND BALTIJOS LIFTAI ON ITS OWN INITIATIVE

The Lithuanian competition authority Konkurencijos taryba has decided to apply the merger control procedure on its own initiative and assess whether the acquisition by Kauno liftai of 100 per cent of shares of Baltijos liftai has created or strengthened a dominant position or significantly restricted competition in the market of lifting equipment maintenance services in Lithuania. The authority has imposed an obligation on Kauno liftai to submit a merger notification by 16 July 2022.

The Law on Competition stipulates that the intended merger must be notified to Konkurencijos taryba and clearance must be obtained if the combined aggregate income of the merging parties in the business year preceding the merger exceeds EUR 20 million and the aggregate income of each of at least two merging parties in the business year preceding the merger exceeds EUR 2 million.

Since the combined aggregate income of Kauno liftai and Baltijos liftai did not exceed EUR 20 million in 2020, there was no obligation for Kauno liftai to notify the intended merger to Konkurencijos taryba and obtain its clearance.

However, the authority has decided to apply the merger control procedure on its own initiative and oblige Kauno liftai to submit the merger notification after suspecting that the transaction might have created or strengthened a dominant position or significantly restricted competition in the market of lifting equipment maintenance services in Lithuania, where the market share of Kauno liftai might have increased significantly.  

Kauno liftai has been obliged to submit the merger notification in relation to the acquisition of 100 per cent of shares of Baltijos liftai by 16 July. After receiving the notification, the authority will collect information and data from companies which provide lifting equipment maintenance services in Lithuania, as well as from other undertakings whose activities are related with the provision of the aforementioned services, and will assess in detail whether the completed transaction creates negative consequences for market participants and consumers.

This decision of Konkurencijos taryba is not subject to appeal.

Konkurencijos taryba may apply the merger control procedure on its own initiative and impose an obligation on undertakings to submit a merger notification where it is likely that the transaction will result in the creation or strengthening of a dominant position or a substantial restriction of competition in a relevant market, and where no more than twelve months have passed from the completion of the merger in question.