NOTIFICATIONS ON CONCENTRATION EXAMINED, AUTHORISATIONS GRANTED

1. The Competition Council in its meeting have examined the submitted notification on an intended concentration passed a decision to authorise UAB „City Plaza“ and Klasmann-Deilmann GmbH to implement the concentration by acquiring 100 percent of shares of UAB „Naujasodžio energijos paslaugos“ and part of the assets of AB „Kauno energija“ in accordance with the submitted notification. The concentration to be implemented by UAB „City Plaza“ was assessed as conglomerate concentration, and that intended by Klasmann-Deilmann GmbH - as horizontal. However, it has been established that the shares in the market for wholesale of peat are changed just to a minor degree which will neither create nor strengthen dominant position; the concentration in question will not cause any significant competitive restrictions in the market concerned.

While assessing the expediency of the concentration the Competition Council took due account of the fact that AB „Kauno energija“ seeks to transfer all shares of UAB „Naujasodžio energijos paslaugos“ owned by it, as well as non-current assets which is leased to the latter company. This would enable AB „Kauno energija“ to repay its debts to AB „Turto bankas“, attract some additional funds to implement an investment programme, separate the principal activity from auxiliary and continue to develop its business of heat production, transmission and distribution.

While acquiring the shares and part of the assets of UAB „Naujasodžio energijos paslaugos“ UAB „City Plaza“ seeks to diversify the activities of the company and introduce new services related to its current production activity, i.e., insulation of pipes, installation and repair of pipelines and heat stations.

By purchasing the shares and part of the assets of UAB „Naujasodžio energijos paslaugos” used by the company in peat extraction the German company Klasmann-Deilmann GmbH seeks to invest in the company, utilise all of its production capacities of peat extraction and processing, and expand its activities not only in Lithuania, but also further in other ES Member States.

2. The meeting of the Competition Council also examined the notification submitted on 17-01-2005 by the Baltic stevedoring company „Klaipėdos Smeltė“ on concentration implemented in 1999 by acquiring 50 percent of shares of UAB „Birių krovinių terminalas“. Having established that the implemented concentration has not resulted in any creation or strengthening of a dominant position, or any significant restrictions of competition in cargo handling market, the Competition Council authorised the concentration in accordance with the submitted notification.