Russia’s FAS (Federal Antimonoly Service) granted its approval on December 25, 2012 to Evraz Plc for an increase of its share in Raspadskaya OJSC. Evraz, a multinational vertically integrated steel making and mining company headquartered in London, was represented by EPA&P’s antitrust practice team led by Partner Natalia Korosteleva.
Following the transaction, Evraz will increase to 100% its share in Corber Enterprises Limited that holds about 82% in the coal company by purchasing 50% from Raspadskaya’s management.
The analysis of competition on the coking coal concentrates market conducted by Russian FAS showed that the major producers included OUK Yuzhkuzbassugol OJSC (member of Evraz Plc group), Raspadskaya OJSC, Vorkutaugol OJSC (member of Severstal OJSC group), Belon OJSC and Sibuglemet CJSC. Initially obtaining approval was questionable as the deal would result in much greater concentration of this sector, which might create conditions for restriction of competition if the demand for coal continued to grow.
However, on December 25, 2012 FAS granted the application filed by Evraz and placed it under an obligation to develop a sales policy for Raspadskaya and other group companies within two months.
During the filing and approval procedures the client was represented by the Firm’s antitrust practice team, including Senior Associate Maria Kobanenko, Associates Olga Denchenkova and Ksenia Firsova led by Partner and Practice Head Natalia Korosteleva.