THREE UNDERTAKINGS PERMITTED TO IMPLEMENT CONCENTRATION

In its meeting the Competition Council examined the applications submitted by the undertakings to authorise concentration and passed appropriate decisions on the issues analysed.

1. AB Mažeikių nafta was authorised to implement concentration by a acquiring 100% holding of AB Mažeikių elektrinė (power plant) in accordance with the submitted notification. The Competition Council established that the intended concentration will not result in a creation or strengthening of a dominant position, or a significant lessening of concentration in the relevant markets.

Having been awarded the tender announced by the State Property Fund concerning the privatisation of the State-owned 85.72% holding of AB Mažeikių elektrinė, AB Mažeikių nafta and the power plant have actually integrated their operations. As indicated by the participants of the concentration, the transactions has been basically determined by the already existing integration of the operations; supply of fuel oil, power generation and the use of the same for the needs of AB Mažeikių nafta, wastewater treatment and the supply of drinking and untreated water. The concentration transaction is expected to increase the efficiency of the AB Mažeikių elektrinė operations, reduce the production costs of heat energy and power and secure the reliable supply of heat and power to AB Mažeikių nafta.

2. The Competition Council has examined the notification submitted by the USA-registered companies Air Express International USA Inc. and LCAG USA Inc. on concentration through establishing LifeConEx LLC company in equal shares. The new company will provide the state-of-the-art management, surveillance and control services in the transportation on temperature-sensitive biomedical products.

The authorisation by the Competition Council for this particular concentration was necessary because Air Express International USA Inc. is a branch of Deutshe Post World Net Group, specialising in the provision of air and sea carriage services. In Lithuania Deutsche Post AG is related to UAB DHL Lietuva. LCAG USA Inc. is a subsidiary of Lufthansa Cargo AG also generating income in the Lithuanian commodity market. The Competition Council concluded that the intended transaction will not change the degree of concentration in the relevant market for the provision of freight forwarding and the supply of containers for air carriage services. Therefore neither will the dominant position be created or strengthened, or will it case any significant lessening of competition in the markets concerned. Having regarded the above circumstances the national competition authority passed the decision to authorise Air Express International USA Inc. and LCAG USA Inc. to establish a joint venture LifeConEx LLC with equal participation in accordance with the submitted notification.

3. The Competition Council examined the notification submitted by UAB SBA Furniture Group for the authorisation of concentration by acquiring a 100% holding of UAB Vakarų medienos grupė and permitted the concentration to be implemented.

The authority assessed the intended transaction as vertical and horizontal concentration in the Lithuanian furniture market which will change the degree of concentration changes by a negligible margin in the relevant furniture market and certain segments of the market but will not result in any creation or strengthening of the dominant position or any significant lessening of competition. Besides, due following the concentration transaction remain countervailing strong buyers power the undertaking will not be able to acquire a unilateral decisive influence.