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May 2016 - On 18 May 2016, a long-anticipated amendment to the law “On the Protection of Economic Competition” (No 935-VIII dated 26 January 2016) comes into force that introduces improvements to the efficiency of Ukraine’s merger control system.
The new amendment significantly improves and simplifies Ukraine’s merger notification procedure. It introduces (i) new merger control thresholds, (ii) a simplified merger review procedure, and (iii) other important changes to merger control rules.
New merger control thresholds
The amendment introduces a two-tier jurisdictional test by applying the following alternative tests for a merger that requires notification.
All thresholds are calculated for the previous year on a group-wide basis. The amendment abolishes the previous 35% market share test, which is no longer applicable.
Simplified merger review procedure
The amendment introduces a simplified 25-day review procedure (in contrast to the standard review period of 45 days) if:
Other important changes to merger control rules
In addition, the amendment establishes the following important changes to merger control rules:
The amendment does not exempt from notification non-competition clauses (so-called “ancillary restraints”), which are widely used in the majority of MandA transactions. This means that enforcement of non-competition restrictions may require a separate approval.
For more information, please contact Kostiantyn Likarchuk, Partner, at , or Mykyta Nota, Managing Associate, at .