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Risks: - Improper modelling of commodity markets, which affects the threshold parameters of shares in the relevant commodity market. - Limited usage of quantitative and cost parameters of the market, which narrows the space for manoeuvre in determining the share, which has considerable significance for future relations with the Antimonopoly Committee. - Avoiding to receiving a permit for concentration, owing to the threat that the Antimonopoly Committee detects all the assets the subject wants to hide for any reasons. The threat to have one’s real assets detected by the Antimonopoly Committee is a wrong position in part of adoption by the enterprise a decision to concentrate. - Business of the enterprise after the concentration - improper modelling of trade activity, which could lead to sanctions by the Antimonopoly Committee.
Recommendations: - When calculating the share of a particular subject on the commodity market, the size of the share sometimes oversteps the limits of the competence of the Antimonopoly Committee, or attracts attention of various regulatory bodies. In this case a proper modelling of commodity markets, based on the types thereof, should be made. - Sometimes statistics used to calculate the market shares lead to the above consequences. In such circumstances alternative (non-statistics) sources of information, applicable according to the current legislation, should be used. - The company can often receive significant financial resource solely as a group, having a consolidated audit. Such audit can not be obtained without the consent of the Antimonopoly Committee. However, owners of companies are reluctant to receive the consent for the concentration, since they do not want to disclose other assets or the real owner of the company. Nevertheless, there are methods allowing to concentrate and retain privacy (L.I.Group is familiar with such methods). - Typically, enterprises conduct their trading activities through sub-companies with a strong turnover. Such situation may be interpreted as anticompetitive concerted actions, which is the basis for legal responsibility. Such situation can be avoided by using a number of trade entities in the relevant market. |
