UAB SPORTLAND LT RECEIVED MERGER CLEARANCE
On July 25 the Competition Council cleared the acquisition of commercial real estate located at Gedimino pr. 20, Vilnius by UAB SPORTLAND LT.
On 30 June 2017 the Competition Council received merger notification. No opinions or objections regarding the transaction were submitted to the Council by interested parties
The Council acknowledged that the intended merger will not restrict competition in the market of commercial real estate lease, and cleared the merger by SPORTLAND LT. The company is engaged in the retail trade of sportswear, leisurewear, footwear and accessories.
The Council rarely examines mergers related to the acquisition of real estate.
In this case real estate is a separate economic unit which occupies a particular market share and generates income in the lease market, thus, the acquisition of such estate is considered a merger. Since the income of the buyer and the income received from real estate lease exceeded merger notification thresholds, merger clearance was required.
Elonas Šatas, Competition Council‘s Deputy Chairman
The intended merger must be notified to the Competition Council and clearance must be obtained if the combined aggregate income of merging parties in the business year preceding the merger exceeds EUR 14.5 million and the aggregate income of each of at least two merging parties in the business year preceding the merger exceeds EUR 1.45 million.