Changes to antimonopoly legislation

Key innovations:

• The Law raised the thresholds which, if exceeded, require a concentration permit from the Antimonopoly Committee of Ukraine (hereinafter, the “AMC”). The new thresholds are as follows:

- The aggregate value of assets or the total sales volume of the parties to a concentration transaction associated by relations of control exceeds EUR 30 million (calculated on a worldwide basis) for the preceding financial year. Furthermore, the aggregate value of assets or the total Ukrainian sales volume of at least two parties to a concentration transaction associated by relations of control exceeds the equivalent of EUR 4 million each, OR

- The aggregate value of assets or the total Ukrainian sales volume of the target business entity or of the entity the assets, shares (equity stakes, participatory interests) of which are acquired for ownership or for control and use, or of at least one of the founders of the newly established business entity associated by relations of control exceeds the equivalent of EUR 8 million for the preceding financial year. Moreover, the sales volume (calculated on a worldwide basis) of at least one other party to a concentration transaction associated by relations of control exceeds the equivalent of EUR 150 million.

• The Law abolished the provision that required obtaining of an approval for concentration from the AMC if the entity’s share in the market of certain commodities (services) exceeded 35%.

• An application for concentration will be processed within 25 days from its receipt by the AMC (a simplified procedure), if:

- only one party to the concentration transaction operates in Ukraine, or

• - the aggregate share of the parties to the concentration transaction in the same commodity market does not exceed 15%, or

- shares or aggregate shares of the parties to the concentration transaction do not exceed 20% in the commodity markets where the products, without which other party to the concentration transaction cannot perform its business activities, are sold.

• The Law introduced a preliminary consultation on the information and documents required for the consideration of application and the possibility of applying the simplified procedure.

• If the applicant fails to provide information on ultimate beneficial owners (controllers) of the parties to the concentration transaction, the AMC will reject the application. The term “ultimate beneficial owner (controller)” is used as defined in the Law of Ukraine “On preventing and combating legalization of proceeds from crime (money laundering), financing of terrorism and proliferation of weapons of mass destruction”.

• Application fee increase:

- Fee for the consideration of an application for concentration approval amounts to 1,200 non-taxable minimum incomes (UAH 20,400); fee for the AMC’s preliminary conclusion on the necessity for obtaining the concentration approval amounts to 880 non-taxable minimum incomes (UAH 14,960)

- Fee for the consideration of an application for concerted actions amounts to 600 non-taxable minimum incomes (UAH 10,200); fee for the AMC’s preliminary conclusion on the necessity for obtaining the concerted actions approval amounts to 280 non-taxable minimum incomes (UAH 4,760)

The Law comes into force on 18 May 2016.