Monopoly or a Market Share?..

“Despite the lull in legislative activities of both lawmakers and the competition authority, 2007 featured a tremendous breakthrough in the authorities practice of application and enforcement of the law. In particular, they have become more flexible and reasonable with regard to information required for various antitrust proceedings, which is extremely important in the absence of statutory derogations, exemptions and simplified procedures. We are hoping that in 2008 these new approaches will be reflected in the authorities regulations, thereby creating further comfort for applicants and other petitioners”, Igor Svechkar, partner with Shevchenko Didkovskiy & Partners, says.

Sayenko Kharenko is ranked highly for handling a variety of antitrust projects for multinationals and major Ukrainian corporations. In 2007, Sayenko Kharenko acted for Japan Tobacco Inc in the USD 15 billion acquisition of the British cigarette group Gallaher Group Plc and its subsidiaries in Ukraine, represented Itron, Inc in the USD 1.6 billion acquisition of Actaris Metering Systems S.A. and its subsidiaries in Ukraine; advised Yara International ASA on the EUR 672 million acquisition of Kemira GrowHow Oyj, etc. The approval of the EUR 110 million acquisition by Celanese Corporation of the cellulose acetate flake, tow and film business of Acetate Products Ltd handled by Sayenko Kharenko established an important precedent when Ukrainian competition authorities recognized that the relevant market can be worldwide and not national. As a result, the AMCU approved the acquisition, resulting in a market share of the combined undertaking in excess of 60% on the Ukrainian market. The firm also provided advice for the anticipated merger between Metalloinvest and the Industrial Union of Donbass. Vladimir Sayenko and Dmitry Taranyk are named the firm’s leading professionals in antitrust related matters.

Shevchenko Didkovskiy & Partners is highly recommended for its antitrust-related expertise. Oleksandr Padalka, Igor Svechkar and Tatyana Buchko are especially regarded as the firm’s leading experts on antitrust issues. In 2007 the firm completed antimonopoly filing in numerous equity and asset acquisition transactions, including obtaining approval from the AMCU for the USD 7.4 billion acquisition by Cerberus investment group of Chrysler Group, as well as for the USD 1.5 billion acquisition by Permira Holdings Limited shares of Valentino Fashion Group S.P.A. The firm assisted with obtaining merger clearance from AMCU by Onex Healthcare Holdings to acquire part of the Kodak Health Group and shares in Husky Injection Molding Systems Ltd; Van Bael & Bellis for the acquisition by PPG Industries, Inc shares in SigmaKalon HoldCo B.V. (the Netherlands), FBD (for the acquisition by Antalis International SAS, a part of the SEQUANA GROUP, of shares in Map Merchant Holdings B.V., etc.

The Kiev office of Baker & McKenzie has extensive experience in antitrust matters. In particular, legal support and obtaining merger clearance from AMCU was accomplished in connection with the merger of ArcelorMittal (USD 5 billion) and acquisition of 100% of shares in Sandora by PepsiAmericas, Inc, and PepsiCo with the value of the deal totaling USD 678.70 million. Antonina Yaholnyk is the leading legal professional in the antitrust field.

The competition practice group of Vasil Kisil & Partners led by the firm’s partner Denis Lysenko was recognized by Ukrainian “Legal Awards 2007” as the market leader. In 2007 the firm represented several clients in the investigation proceedings at the AMCU and cleared a number of major share and asset acquisition transactions with the AMCU, including acquisitions of American Power Conversion Corporation by Schneider Electric S.A., PELCO by Schneider Electric S.A., Soletanche by Vinci Construction, Klockner-Werke AG by Salzgitter, Trader Media East Limited by Huerriet Gazetecilik ve Matbaacilik A.S., ASAP by Dell Inc, etc. Maria Nizhnik and Anna Babych are highly recommended associates for their antitrust work.

Konnov & Sozanovsky advises clients on M&A competition issues, corporate reorganizations, as well as anticompetitive concerted practices and abuse of dominant position issues. For instance, this year Konnov & Sozanovsky obtained a permit from the AMCU for the merger of Basell and the Lyondell Chemical Company, for acquisition by the Veolia Proprete Company of the shares of the SULO Gr Company and for acquisition by International Paper of a 50% stake in the Ilim Company. Partners Alexey Pustovit and Ronald Marks are recognized as antitrust legal practitioners.

DLA Piper Ukraine acted as legal counsel to OJSC Gazprom in the deal on structuring of settlement of indebtedness of LLC Ukrgasenergo to RosUkrEnergo AG (USD 729 million), including consultancy regarding regulatory, customs and tax issues, means of securitisation of obligations and drafting all the relevant agreements. The deal was supported by Oleksandr Kurdydyk and Natalia Fuklyeva, Oleksandr Strukov, Natalia Dyadchenko, Pavlo Kazymirov. The team also conducted internal restructuring of a major international grain company in Ukraine which included obtaining concentration permits from the AMCU and antitrust consultancy. Natalia Pakhomovska and Dmytro Derkach are especially recommended for their experience in the antitrust field.

In 2007 Volkov & Partners advised four leading players in the Ukrainian detergents market on protection of their interests in connection with violation of antitrust legislation by a market player. Andrey Karnaukhov and Oleksandr Aleksyeyenko were recommended.

Broad experience in antitrust matters is observed in the Spenser & Kauffmann law firm. In 2007 its lawyers Valentin Zagariya and Viktoria Ptashnik represented investment fund PPF Investments within the framework of obtaining concentration permits from the AMCU in deals to acquire shares in telecommunication companies.

Gramatskiy & Partners provides clients with preparation of individual schemes for conducting economic concentration of subjects of entrepreneurship, legal support and assistance in getting the necessary permits or preliminary reports from the authorities of antimonopoly regulation and control of conduction of economic concentration. The firm’s key experts in the field of antitrust are Ernest Gramatskiy and Alexander Koval.

The recently established Kiev office of CMS Cameron McKenna advises major foreign and local clients on merger control and concerted actions issues, issues related to the anticompetitive conduct on the market, predatory prices, dawn raid procedures, etc. Olexander Martinenko and Olga Belyakova are regarded as prominent experts in this field.

Arzinger & Partners in 2007 successfully represented the interests of clients in obtaining permits for concentration for M&A transactions, advised on anticompetitive concerted actions in telecommunications and the food industry. Sergey Shklyar, Igor Darmogray, Evgenia Novichkova are all known for their contribution to the antitrust practice.

Andriy Kravets & Partners represented a Ukrainian development company and oil and gas enterprises in obtaining concentration permits from the AMCU. Ulyana Khromyak and Julia Samoylova are leading lawyers in the firm’s antitrust practice.

Artur Kotenko, the leading antirust lawyer of KM Partners was highly recommended by the poll. Under his leadership KM Partners provided legal assistance to Mircal (Paris) in the AMCU for mediate acquisition of shares in the OJSC Vatutin flux industrial plant and in the statutory fund of LLC Kalderis Ukraine.

The Salkom law firm has been protecting and representing clients’ interests in the AMCU and its regional administrations; providing legal advice during economic concentration (mergers, joining, acquisition of controlling interest in companies, appointing CEOs of other companies as CEOs of the company etc. Partner Alexey Kot leads the antitrust practice and was recommended in the poll.

Ukrainian Legal Group, Chadbourne & Parke and its managing partner Jaroslawa Johnson, PricewaterhouseCoopers, Magister & Partners, Ernst & Young in Ukraine, LEXFOR, Deloitte & Touche, Andriy Kravets & Partners and the Legal Alliance Company were also marked out for their experience in antirust matters.