COMPANY APOLLO MANAGEMENT L.P. WILL PAY A FINE FOR CONCENTRATION WITHOUT A PERMIT

According to the information, provided by authoritative representatives of companies Apollo Management L.P. (New York, USA) and Warrior Met Coal, LCC (Wilmington, USA) the concentration was in indirect, through investment fund acquisition of shares of company Warrior Met Coal, LCC in the aggregate 30,56 percent of the share capital of the company by company Apollo Management L.P.; this acquisition was completed on 31 March, 2016, pursuant to the Memorandum of private placement (the conditions of which became the basis for the specified concentration).

With that, the stated concentration could be implemented only with the prior permission of the Antimonopoly Committee of Ukraine as following the results of 2015, in view of control relationships, monetary measures of the concentration participants exceeded the thresholds defined by paragraph 1 of Article 24 of the Law of Ukraine “On protection of the economic competition” (as to the version which was in force at the time of concentration).

The Committee received the application from Apollo Management L.P. for the permission for indirect acquisition of shares of company Warrior Met Coal, LCC on 30 September, 2016, i.e. after the implementation of the concentration.

Such actions of Apollo Management L.P. in the form of the implementation of the concentration without a corresponding permit from the Anti-monopoly Committee of Ukraine were recognized by the AMCU as a violation under paragraph 12 of Article 50 of the Law of Ukraine “On protection of the economic competition”.

Taking into account that company Apollo Management L.P. agreed with the conclusions of the Anti-monopoly Committee of Ukraine and appealed for granting permission for concentration before the hearing abuse, penalties amounted to 85 ths. hryvnas.

During the proceedings on the violation, the AMCU found that the concentration participants were operating on different non-adjacent product markets in Ukraine and such concentration doesn’t lead to the monopolization or significant restriction of competition on product markets in Ukraine. By the decision from 16/02/2017, the AMCU (excluding penalties) provided the company Apollo Management, L.P. with the permit for the corresponding acquisition of shares of company Warrior Met Coal, LLC.

 

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