Control of economic concentration and state participation in the economy

Department for Control over Economic Concentration and State Participation in the Economy:

– exercises control over the economic concentration by issuing prior consent in accordance with the procedure established by law, for the acquisition by a person or group of persons of shares (shares) in the authorized fund (authorized capital) of an economic entity, as well as in the implementation of activities related to mergers and acquisitions of economic entities;

– exercises control over the reduction of state participation in the economy by issuing the preliminary consent of the antimonopoly authority to the creation (reorganization) of economic entities with state participation, as well as their affiliates and state institutions authorized to carry out economic activities;

– evaluates market concentration in commodity, financial and digital markets;

– advises on the acquisition of shares (stakes) in the authorized fund (authorized capital) of an economic entity by a person and a group of persons, as well as on issues related to obtaining preliminary approval of agreements on mergers and acquisitions of economic entities, the creation of enterprises with state participation.

In the first half of 2023, the Competition Promotion and Consumer Protection Committee considered a total of 64 appeals for the acquisition of shares in the authorized capital (authorized capital) of economic entities, as well as for mergers and acquisitions of economic entities. Based on the results of the appeals, transactions were pre-approved in 52 cases, the decision of the special commission to give consent was canceled due to non-payment of the fee for issuing a permit document in 3 cases, and in 9 cases it was explained that prior consent of the antimonopoly body is not required.

All received applications were carefully analyzed, in total, the Committee preliminarily approved transactions in the amount of 6041 billion soums,of which 51.2 percent, i.e. transactions for the amount of 3094 billion soums. (270.7 million USD) contribution of foreign investors.

For the first half of the current year, in accordance with subparagraph “g” of paragraph 2 of the Decree of the President of the Republic of Uzbekistan No. UP-6019 dated July 6, 2020, 16 appeals were received to obtain the preliminary consent of the antimonopoly authority for the creation of business entities with state participation. Of these, in 12 cases, consent was issued for the creation of state-owned economic entities due to the underdevelopment of the commodity market, in 1 case it was refused to issue consent to the creation of an economic entity with state participation in connection with the development of the commodity market, the presence of more than 5 private business entities in this market, and in 3 cases a letter was sent stating that the creation of an economic entity with state participation does not require prior approval.

In addition, in 3 cases it was established that economic entities with state participation were created without obtaining the prior consent of the antimonopoly authority, and appropriate measures were applied to them in the prescribed manner.

 

No.	Name of public services	During of 6 months of 2023
		Number of considered appeals	Of them
			a preliminary consent was issued	Mail sent stating no prior consent required	Prior consent was denied
1	Deals on mergers and acquisitions of business entities	12	11	–	1
2	Acquisition of 50 or more percent of shares of business entities	52	41	9	2
х	Total	64	52	9	3