Business news from Ukraine

ANTIMONOPOLY COMMITTEE OF UKRAINE STARTS INVESTIGATION ON POSSIBLE COAL PRICE FIXING OF STATE MINES

The Antimonopoly Committee of Ukraine (AMCU) has started an investigation on the indices of possible anti-competitive coordinated actions when fixing price on the energy coal of state-run mines for the needs of thermal power plants (TPP) and combined heat and power supply plants (CHPP).
“The committee established that within 2017-2018 Energy and Coal Industry Ministry of Ukraine held meetings with state-owned enterprise Derzhvuhlepostach, PJSC Donbasenergo, LLC DTEK Energo, Ukrinterenergo State Foreign Trade Company, PJSC Cherkasy Khimvolokno, LLC TehNova company to reach the agreements over fixing prices for coal products of state-run enterprises for TPPs and CHPs that is confirmed by the protocols of these meetings,” reads by regulator-issued report.
According to the AMCU, these companies are potential competitors in the electricity and steam coal markets, respectively, the support of these companies to increase prices for coal products for TPPs and CHPs to a certain level could lead to distortion of competition.
In this regard, the committee began consideration of the case regarding anti-competitive actions of these companies, violation by the Energy and Coal Industry Ministry of law on the protection of economic competition in the form of inducing business entities to take anti-competitive concerted actions and promotion of such violations.
As reported, in recent years Ukraine’s Energy and Coal Industry Ministry during meetings recommended prices for coal sales of state mines for thermal power plants.

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TIGIPKO FINED BY ANTIMONOPOLY COMMITTEE OF UKRAINE

The Antimonopoly Committee of Ukraine has fined PrJSC Kuznya on Rybalsky plant (Kyiv) UAH 136,000 for submission of inaccurate information in 2018 in relation to seven companies.
According to the decision made on May 20 by the competition agency, unreliable information was submitted while Sergiy Tigipko received permission to concentrate indirectly the Kuznya on Rybalsky plant’s shares in 2018 through Evinz Limited.
According to the decision, the committee on October 18, 2018 granted permission for concentration, based on information about the relationship of control only with Bud-Renovatsiya LLC and Land Development Ltd. Plus.
At the same time, on December 28, 2018, the committee received a petition from the authorized representative of PrJSC Kuznya on Rybalsky plant, which said: the shipyard is also connected by control relations with a number of subsidiaries – the House of Culture, the Medical Sanitary Department, LK-Metallurgy, catering subsidiary Parus, Housing-Operational Office-LK, Vnesheconomservice and Kyivgeist Investment LLC (all based in Kyiv).
Thus, the House of Culture and the Medical Sanitary Department also lease their own real estate, namely office, industrial and warehouse premises within Kyiv city.
According to the committee, the cumulative share of participants in the concentration in 2016-2018 of the rental industrial real estate market within Kyiv city does not exceed 5%, therefore, the provision of inaccurate information did not affect the committee’s decision to give permission for concentration.

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ANTIMONOPOLY COMMITTEE PERMITES BUSINESSMAN VADIM NOVINSKY TO ACQUIRE STAKE IN YUDZHIN DEVELOPER

The Antimonopoly Committee of Ukraine has permitted Komisiano Investments Ltd. (Limassol, Cyprus) of businessman Vadim Novinsky to acquire a stake in the charter capital of Yudzhin LLC (Kyiv), granting over 50% of the votes in the management body of the latter.
“This transaction is carried out within the implementation of the development strategy of the real estate business. In this connection, the holding decided to build up the majority stake in the Yudzhin company,” Smart-holding told Interfax-Ukraine.
Yudzhin LLC was created in 2001. Its core business is the development of construction projects.
Its charter capital is UAH 682.14 million.

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ANTIMONOPOLY COMMITTEE OF UKRAINE APPROVES CHINA’S BOCE’S APPLICATION TO BUY STAKE IN PFTS

The Antimonopoly Committee of Ukraine has approved an application of China’s Bohai Commodity Exchange (BOCE) to acquire a stake in the share capital of PJSC PFTS Stock Exchange (Kyiv), the press service of the committee has told Interfax-Ukraine. As reported, BOCE early May 2018 asked the Antimonopoly Committee of Ukraine for preliminary conclusions on the acquisition of over 25% of shares in PFTS. The application was returned, as information was not disclosed in a proper way. Late September, the Chinese exchange repeatedly submitted the documents.
PFTS Stock Exchange is one of the oldest in the Ukrainian stock market. In 2017, the volume of exchange contracts on the PFTS amounted to UAH 64.34 billion, and this indicator was less only compared with the Perspectiva stock exchange (UAH 127.43 billion), but it is more than at the Ukrainian Exchange (UAH 13.41 billion). The main volume of trading fell on government bonds – UAH 57.99 billion, while the turnover of shares amounted to UAH 3.16 billion, bonds of enterprises – UAH 3.19 billion.
PFTS in 2017 received a net profit of UAH 0.82 million against a net loss of UAH 1.78 million a year earlier, increasing revenues by 61.5%, to UAH 9.45 million.
Its main shareholders are Parvana Ltd. with 8.9034% of shares, Crooxton Limited – 9.0596%, Primeview Ltd. – 8.4973%, Dakal Ltd. – 9.372% and Boline Ltd. – 9, 2158%, which beneficiaries are unknown.

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ANTIMONOPOLY COMMITTEE OF UKRAINE ALLOWS JAPANESE CORPORATION SUMITOMO TO ACQUIRE 51% STAKE IN SPEKTR-AGRO COMPANY

The Antimonopoly Committee of Ukraine (AMC) has allowed Sumitomo, a Japanese corporation, to acquire a 51% stake in British-based Oscar Agro Limited, which owns Spektr-Agro and Spektr-Agrotekhnika (both based in Obukhiv, Kyiv region). “Oscar Agro is a company in the UK that was created for this project. Oscar Agro owns 100% of the shares of Spektr-Agro and Spektr-Agrotekhnika, while Sumitomo will acquire 51% of the shares of Oscar Agro,” Sumitomo Corporation told Interfax -Ukraine.
The AMC also gave permission to Ihor Lavreniuk, Vasyl Skarlat and Volodymyr Lobach (Spektr-Agro and Spektr-Agrotekhnika) and Sumitomo Corporation for concerted actions in the form of restricting competitive behavior and refusing to lure employees for five years.
Spektr-Agro LLC was founded in 2009. It currently operates throughout Ukraine, distributes plant protection products, fertilizers, seeds and agricultural equipment for more than 3,500 agricultural producers in the country.
Sumitomo Group is one of the largest Japanese corporations. It includes companies in the financial sector, engineering, electrical industry, ferrous and nonferrous metallurgy, etc.

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ANTIMONOPOLY COMMITTEE OF UKRAINE CONSIDERING POSSIBILITY OF UNITING ROZETKA AND EVO MARKETPLACES

The Antimonopoly Committee of Ukraine (AMC) in order to prevent monopolization of commodity markets has begun consideration of a number of concentration cases that will lead to the Rozetka marketplace owners’ gaining control over the EVO marketplaces.
In particular, the AMC is investigating the legitimacy of the acquisition by Temania Enterprises Ltd (Limassol, Cyprus) of shares in the charter capital of Uaprom and Aukro Ukraine (Kyiv, Ukraine), Tiu.ru (Russia), Project Dealbay (Belarus), and Satu.kz Advertising Agency (Kazakhstan), which will provide it with over 50% of the voting shares on the companies’ board.
The AMC said as a result of these concentrations the buyer (who owns the Rozetka.ua online trading platform) will gain control over the marketplaces of the acquired objects, namely Prom.ua, Bigl.ua, Shafa.ua, Crafta.ua, Kabanchik.net, Zakupki.prom.ua, Satu.kz, Deal.by, etc.
The committee notes these cases are open for an in-depth study of the impact of concentration on the e-commerce markets, in particular the field of providing online services for trade in goods/services.
As reported, the Rozetka online supermarket and EVO group of companies plan to merge. As a result of the planned deal, Rozetka will buy out Naspers’ share in EVO, while the share of the EVO founders will be transformed into a share in the merged company.

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