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AMCU requested the opinion of the companies on the obligations of Metinvest in case of obtaining indirect control over the DMK

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The Economic Court of the Dnipropetrovsk Region opened the DMK bankruptcy proceedings in May 2019. Then the creditors announced claims to the DMK in the amount of about UAH 130 billion.

AMCU requested the opinion of the companies on the obligations of Metinvest in case of obtaining indirect control over the DMK

The Antimonopoly Committee of Ukraine (AMCU) requested the opinion of market participants, in particular metallurgical enterprises, regarding the voluntary restrictions of the country's largest mining and metallurgical holding - the Metinvest group - in the event that they obtain indirect control over PJSC Dnipro Metallurgical Plant "(DMK, Kamenskoye, Dnepropetrovsk region), part of the " Industrial Union of Donbass "corporation (" ISD ").

At the same time, the AMCU published the obligations proposed by the Metinvest group in the framework of the case of economic concentration.

"The Committee is considering the case of concentration in the form of an indirect acquisition of assets by the company " Metinvest BV "(Netherlands) in the form of an integral property complex (CEC), which together provide economic activities for the production and sale of metal products belonging to PJSC "DMK ". When analyzing the case materials and assessing the impact of the declared concentration on the competitive environment in the involved commodity markets, the Committee established the presence of possible negative effects on the market for commercial pig iron, "the AMCU said in its information.

It is also specified that in pursuance of the requirements of Art. 31 of the Law of Ukraine "On the Protection of Economic Competition ", Metinvest has submitted proposals on obligations that the participants in the concentration are ready to undertake to eliminate the potential negative impact of concentration on competition, and allow the Antimonopoly Committee of Ukraine to decide on granting permission for concentration.

So, in order to mitigate the potential negative impact of concentration in the form of indirect acquisition by Metinvest of assets in the form of CEC DMK on competition in the market, which includes commercial pig iron (pig iron), to oblige Metinvest, taking into account control relations, within three years to prevent an unjustified refusal to sell commercial pig iron to business entities that are not related to the control relationship with Metinvest at the time of the concentration. Namely, in the presence of requests from such business entities, to ensure the sale of pig iron in the amount of at least 12 thousand tons annually.

When selling commercial pig iron, apply market prices.

Provide the AMCU within three years, starting from the next year after the concentration, once a year, information on the volume of supplies to the Ukrainian market of commercial pig iron produced by Metinvest BV in volume and value terms, indicating consumers and selling prices.

"In order to collect data on the feedback from other market participants, we ask interested parties to send information, comments and suggestions on the issue of obligations within the specified concentration until May 11, 2021. " - summarized in the announcement of the AMCU.

As reported, the AMCU on February 11, 2021 announced the beginning of the consideration of the case on the indirect acquisition of the CEC DMK by the Metinvest group. Earlier, on January 28 this year, the AMCU granted permission for the acquisition of the CEC "DMK " of a large company for the trading of metals and metal ores, LLC "Optimal Trade " (Kiev), to which the shareholders of PrJSC "Donetskstal " - a metallurgical plant " in September 2020, the rights of claiming DMK's debt for UAH 8.175 billion were assigned.

The economic court of the Dnipropetrovsk region opened proceedings on the DMK bankruptcy case in May 2019. Then the creditors announced claims to the DMK in the amount of about UAH 130 billion, including the claims of Optimal Trade LLC amounted to UAH 20.9 billion, Metinvest Holding LLC - UAH 20.7 billion.

Oleg Semyonov from Kherson, who owns it through the Cypriot Nerselia Holding Ltd, is listed as the beneficiary of the Optimal Trade, a trader of metals and metal ores, registered in September 2017, with revenue of UAH 17.3 billion in 2019.

It was also reported that the group of companies "Metinvest " did not make a final decision on the purchase of the CEC DMK: "The permission of the AMCU does not mean the acquisition of the plant, but only gives the right to participate in the auction for its assets. Taking into account the significant downtime of the plant , its stop in 2017 and, as a result, a rather poor technical condition, "Metinvest " has not yet made a final decision on participation in the tender for the purchase of DMK assets, "- said the group's response to the request to the agency " Interfax-Ukraine "on February 11, 2021.

"Metinvest " recalled that DMK has been going through bankruptcy proceedings for about two years, and since October 2020 it has been in the process of reorganization, which provides for the satisfaction of creditors' claims by selling the plant's assets at auction, collecting accounts receivable and selling non-core assets. At the same time, the response emphasized that Metinvest is only one of the not-so-large of 230 DMK creditors who, by a majority vote, supported the resolution plan.

DMK specializes in the production of cast iron, steel, rolled products and consumer goods

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