Privatization of United Mining and Chemical Company: AMCU approved the deal, but with antitrust conditions

The Antimonopoly Committee of Ukraine has allowed Tsemin Ukraine to acquire more than 50% of the shares of the United Mining and Chemical Company.

However, due to the risks to competition in the ore concentrate market, the participants in the deal have undertaken not to abuse their influence and to adhere to transparent trading conditions for three years, the Antimonopoly Committee reported.

The Antimonopoly Committee has completed consideration of the concentration case and allowed Tsemin Ukraine LLC to acquire a controlling stake in JSC United Mining and Chemical Company. This represents more than 50% of the votes in the company’s supreme management body.

United Mining and Chemical Company is one of the largest Ukrainian producers of strategically important ore concentrates — zircon, ilmenite, rutile, distensillimanite, staurolite. Due to the potential impact on the market, the AMCU conducted a survey of consumers and competitors, after which it was determined that the deal could have a negative impact on competition.

To avoid this, the participants proposed obligations that will be valid for three years after the agreement. Among them are a ban on restricting the sale of concentrates without economic reasons, a requirement to sell at market prices, not to reduce production and not to create discriminatory conditions for consumers.

The obligations were submitted for public discussion, but the market did not object.

The AMCU also introduced an annual control mechanism: companies are required to provide data on production volumes, prices, exports, refusals to supply and copies of contracts. In case of violation of the conditions, the regulator promises to react in accordance with the law.

Earlier, USM reported that the AMCU allowed the owner of Vodafone Ukraine to privatize United Mining and Chemical Company.