THE OBJECTIVE OF THE CONCENTRATION - INVESTMENT

1. The session of the Competition examined the notification submitted by Mittal Steel Company N.V. on concentration by acquiring a shareholding of 93.02 percent in Krivorizhstal iron ore extraction and processing company. The decision of the authority was to permit the concentration in accordance with the submitted notification. The Competition Council assessed the notified concentration as horizontal, having resolved, however, that the degree of concentration in the relevant market for coal steel products will change quite insignificantly, therefore the dominant position will be neither created or strengthened, neither will the transaction have a consequence of a significant lessening of competition in the markets concerned.

Mittal Steel Company N.V. the Netherlands-based international steel company is obligated to seek the authorisation from the Lithuanian Competition Council as the company is generating revenues in Lithuania. In its notification Mittal Steel Company N.V. has pointed out that the acquisition of Krivorizhstal is a promising investment undertaking which will further be reinforced by additional capital influxes with a view to increasing the productivity of the company and improving the product quality. The development of international sales and the marketing network will strengthen the competitive position of the two companies on the global scale.

2. The authority passed the decision to authorise UAB SEB rizikos kapitalo valdymas to implement concentration by acquiring 42.5 percent of shares of UAB Mestilla, and the joined control of the company in accordance with the submitted notification in cooperation with Darius Zubas, Arūnas Zubas, Vytautas Šidlauskas and Dainius Pilkauskas. The decision was passed having established by the Competition Council that the intended concentration will not result in a creation or strengthening of a dominant position or a significant lessening of competition in the relevant markets. The participants of the concentration have pointed out that the overall purpose of the transaction is the profit-seeking financial investment and facilitation of access to funding targeted for the construction of a modern biodiesel fuel plant.