Amendments to regulations on notification of concentration clearance in Lithuania. Concentration clearance permits will be required less frequently

As from 1 January 2018 the intended concentration must be notified to the Competition Council of the Republic of Lithuania and its permission must be obtained where the combined aggregate turnover of the undertakings concerned in the business year preceding the concentration is more than EUR 20 mln. and the aggregate turnover of each of at least two undertakings concerned in the business year preceding the concentration is more than EUR 2 mln. The turnover thresholds increased from EUR 1,45 EUR 2 mln. EUR in respect to individual aggregate turnover and from EUR 14, 5 mln. to EUR 20 mln. in respect to combined aggregate turnover.

Amendments to regulations on notification of concentration clearance in Lithuania lower bureaucratic burden for mergers and acquisitions. Increase in turnover thresholds for concentration clearance may result in less frequent concentration notifications, however procedures remain quite complex and shall be observed carefully.

In order to calculate the aggregate turnover of the undertakings participating in the concentration it is important to consider the fact of belonging of such undertakings to a group. If undertaking participating in the concentration belongs to a group of associated companies, the aggregate turnover shall be calculated as the total amount of aggregate turnover of all the undertakings belonging to the group of associated companies. The group of associated undertakings means two or more undertakings which, due to their mutual control or interdependence and possible concerted actions are considered as one undertaking when calculating joint turnover and market share (e.g. companies which own 1/2 or bigger part of shares of the company participating in concentration as well as companies which are owned in 1/2 or bigger part by company participating in concentration etc.).

In case of foreign undertaking participating in the concentration or belonging to the group of associated undertakings, the aggregate turnover of this foreign undertaking shall be calculated as the total amount of turnover received on the product markets within the Republic of Lithuania.

According to the new regulations of notification on concentration clearance the notification shall be supported by financial accounts of one past year instead of three, the turnover shall be calculated taking into account turnover of the past one financial year.

By Lina Šikšniutė-Vaitiekūnienė, partner at Lextal Vilnius