The Georgian National Competition Agency is studying 3 cases of compatibility with the competitive environment of the concentration (merger) of undertakings. The subject concerns the purchase of 100% share of “Arttime” by “Roniko”, 100% share of “Pharmarea” by “Silk Road Engineering” and 100% share of “Legometal” by N/P Temur Bolkvadze.
During the monitoring of the 4th quarter of 2022, cases of concentration were identified that undertakings implemented without prior mandatory notification to the Agency, in the accessories and luxury goods sector, in the field of import and sale of agricultural machinery, and in the markets of ferrous and non-ferrous metals.
As a result, financial sanctions were applied to the purchasing undertakings and they were ordered to submit a relevant statement to the Agency for confirmation of concentration.
In accordance with the relevant legislation, persons interested in the merger of the mentioned companies have the opportunity to present their opinions - no later than April 19, 2023, to the Agency’s e-mail: info@gnca.gov.ge or to the address - Tbilisi, Davit Agmashenebeli ave. N154, 10th floor.
For information: Implementation of a concentration subject to prior mandatory notification is allowed when Agency makes the following decision on the compatibility of the planned concentration with the competitive environment.
According to Law concentration is subject to notification to the Agency if the aggregate (total) annual turnover of its participants on the territory of Georgia, exceeds 20 million GEL and the annual turnover of at least two persons participating in the concentration exceeds 5 million GEL for the previous financial year. Imposing a fine does not release the person with the obligation to submit the notification on the concentration.
Implementing the concentration without preliminary notification, before the notification is considered or despite the negative decision of the Agency, may result in a fine, of up to 5% annual turnover of the previous year. The fee for reviewing a concentration notice is GEL 5,000
In 2022, 20 639 concentrations have been implemented in the country. The Agency has approved 6 concentrations. 2 concentration was implemented without prior notification to the Agency.
