On 26 January 2016 the Verkhovna Rada of Ukraine introduced changes to the Law of Ukraine "On Protection of Economic Competition". These changes are intended to simplify concentration control regime in Ukraine through increasing the financial thresholds and implementing simplified procedure of concentration clearance.
According to the Law, the Antimonopoly Committee has to be notified of a concentration if one of the following criteria is met:
- if worldwide value of assets or aggregate turnover of parties to concentration in the last financial year exceeds EUR 30 million, and the value of assets or turnover in Ukraine of at least two parties to concentration in the last financial year exceeds EUR 4 million each; or
- if the value of assets or turnover in Ukraine of target undertaking, or of at least one founder of new enterprise to be incorporated (taking into account control relations) in the last financial year exceeds EUR 8 million, and the worldwide value of assets or aggregate turnover of at least one other party to concentration in the last financial year exceeds EUR 150 million.
Also the introduced changes excluded the requirement to obtain permit to concentration in cases where market share of any party to concentration (or aggregate share of parties in Ukraine) at Ukrainian product market exceeds 35%.
The Law introduces the new simplified procedure of reviewing the merger notification, which lasts 25 days from the date of submitting the notification (instead of 45 days under general procedure). The parties to concentration may take advantage of the simplified procedure provided that:
- only one party to concentration is active in Ukraine, or
- the aggregate market share of parties to concentration on the same market does not exceed 15% or
- share of any party or aggregate shares of parties to concentration on the key markets does not exceed 20%.
Additionally, the amended Law introduces possibility to hold preliminary consultations with the Antimonopoly Committee before filing the merger notification in order to clarify scope of information and documents to be submitted. Previously such consultations could be held only after filing the notification to the committee.
Also, the fee for submission of the applications for concentration and concerted actions will be increased 4 times (up to UAH 20,400 and UAH 10,200, respectively).
The Law will become effective following signing by the President in 2 months after its publication. We expect that this will occur this April.