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Concentrations - CHAPTER V - CONCENTRATION OF ENTERPRISES

Article 13 - Definition of Concentrations 

Concentration of enterprises is created by installing permanent control, by which is acquired:

  • merging of two or more independent enterprises or parts of these enterprises;
  • direct or indirect control, or influence on the dominating position of one or more enterprises or parts of enterprises, as follows:
  • taking over majority of shares or of a part of them;
  • taking over majority voting rights;
  • in another way in the sense of provisions of laws in force and other regulations.

Acquiring control pursuant to paragraph 1 of this Article is achieved by transferring the rights, contracts or other acts through which one or more enterprises,either individually or together, taking into consideration all legal and factual  circumstances, acquire the possibility to achieve influence of the dominant position for one or more enterprises in permanent basis.

Creation of a joint venture from one or more independent enterprises, which works on permanent basis as an independent economic subject, shall be considered as concentration pursuant to paragraph 1 of this Article.

Government with proposal of the Authority a special act defines the way of presenting the request and criteria to ascertain concentration.

Concentration of enterprises pursuant to paragraph 1 to 3 of this Article shall not be considered:

  • When buying Purchasing enterprise shares by financial institutions, loan and insurance institutions, resale, for as long as they do not practice the right vote for the shares they own and under the condition that their resale takes place within twelve(12) months from the purchase;
  • by a request, the Authority may extend the period for another twelve months if the operator proves that such a sale was not possible to take place within the specified period;
  • purchase of shares or parts of shares as a result of enterprise internal restructuration and related to joint control-take over,merging, and transfer of property;
  • when the control over the enterprise is transferred to the bankruptcy manager or the liquidator in compliance with the provisions of laws in power.

Article 14 -Prohibited Concentrations

Concentrations of enterprises, which may significantly damage competition, especially when such concentration results in strengthening of current dominant position or creation of a new dominant position, is prohibited.