OREANDA-NEWS. November 02, 2012. Deputy Head of the Federal Antimonopoly Service (FAS Russia) Anatoly Golomolzin addressed the 4th Conference of the International Bar Association “Mergers and Acquisitions in Russia and the CIS”, reported the press-centre of FAS Russia.   

Anatoly Golomolzin took part in the session on Antimonopoly Regulation of Mergers and Acquisitions in Russia and the CIS, including major transactions and transactions with foreign involvement. Deputy Head of FAS discussed FAS practice on control over larger mergers and acquisitions and the main market trends related to changing the law and situation on relevant markets.

Anatoly Golomolzin said that in 2009 the number of transactions controlled by FAS had reduced by over 3.7 times. This trend was determined by increasing the threshold value, upon which the antimonopoly authority controls transactions. In the next three years the number of notifications decreased considerably (medium-sized transactions) - by more than twofold, particularly, due to abolishing notifications regarding agreements between organizations in financial sector. In the period in question, the number of petitions (major transactions) considered by FAS reduced approximately by 30%.

Currently, the threshold values upon which FAS controls large mergers and acquisitions, are similar to developed counties, including the USA and the EU.

Anatoly Golomolzin informed the Conference about forthcoming changes to the law, in the part of reducing administrative burden on business, particularly, on abolishing the institute of notification. Transactions within groups of persons formed on the basis of assess possession will not be subject to consideration. Transactions with participation of economic entities included in the Register with over 35% market shares will be controlled only with regard to the markets, on which companies are included in the Register and on related markets. Requirements on the scope of information to be submitted will be further reduced, in particular, with regard to information that can be obtained from other executive bodies.

Anatoly Golomolzin pointed out that most of petitions considered by FAS concern transactions for acquiring stock and shares in the authorized capital of large economic entities. Foreign companies are more represented in the sector of major transactions (slightly over 20%). Medium-sized transactions with foreign involvement considered by FAS on average constitute 5-7%.

Approximately 5 - 7% of all petitions and notifications are granted with issuing requirements aimed at protecting competition. About 1% of the total number of petitions is refused.

The number of major transactions in the Russian Federation is more than in other counrties. It demonstrates high investment attractiveness of Russian assets and high level of economic activity and, to a considerable extent, is determined by the ongoing reforms.

Anatoly Golomolzin gave more detailed description of transactions in certain sectors: electric power industry, oil and oil products, telecommunications, railway transport and airports. Such transactions showed that transaction trends, in particular, depend on the reforms in the relevant fields and, to a considerable extent, on developing competition conditions on these markets.