UAB JUNGTINIS TIEKIMAS WILL FACILITATE THE TRADING BY SMALL AND MEDIUM-SIZED ENTERPRISES

1. At the meeting the Competition Council passed the decision to authorise the entities UAB Naras, UAB Mažeikių Varduva, UAB Iris, UAB Bikuvos prekyba, UAB ERRA and KO, UAB Serfas, J. Gabriūnienė‘s firm Stetiškių ūkis and UAB Jupojos investicinė grupė to implement the concentration deal by establishing a joint venture UAB Jungtinis tiekimas in accordance with the submitted notification. The Competition Council assessed that the notified concentration will not create or strengthen dominant position or result in any more significant lessening of competition in the relevant markets of trading in construction materials or retail market for construction materials.

The notification indicated that through the establishing of UAB Jungtinis tiekimas the companies were seeking to found the centre for logistics and distribution of construction materials. The centre, intended to engage in wholesale trading in construction materials and the provision of logistic services, in the opinion of the founding companies, will unite the small traders in construction materials, thus facilitating the reduction of logistics and distribution costs and ensuring the timely delivery of the goods. There are about 900 enterprises operating in the Lithuanian market for trading in construction materials. UAB Jungtinis tiekimas is expected to facilitate it founding companies to compete with UAB Senukai and other major players in the market concerned.

2. The Competition Council examined the notification on concentration filed on 25-08-2006 by UAB Mabilta whereby the company notified of its intention to implement concentration by acquiring up to 100% of the holding in AB Kasyba. Having established that the notified concentration deal will not result in strengthening or creation of a dominant position or any significant weakening of competition in the relevant markets of real estate development and construction works, the Competition Council resolved to authorise the transaction in accordance with the submitted notification. The notifying entity indicated that UAB Mabilta was seeking to strengthen the control of AB Kasyba, and thus ensure the participation of the latter, being a reliable and experienced construction contractor, in the real estate development projects implemented by UAB Mabilta.