Antimonopoly Committee May Review Its Permission for Kyivstar-VimpelCom Merger by September

kyivstar-beelineThe Antimonopoly Committee of Ukraine by September may pass a decision on review of its permission for merger of Kyivstar mobile communication operator and VimpelCom mobile communication operator (Russia).

The Antimonopoly Committee’s Chairman Oleksii Kostusev announced this to journalists.

“We’ll take a decision on this matter soon. I guess, in a month definitely,” he said.

Kostusev is surprised at the decision made by the previous Antimonopoly Committee leadership on giving the green light to the deal.

“I do not understand how the Antimonopoly Committee’s previous members gave permission for this merger,” he said.

The Committee chief did not specify a decision, which in his opinion the Committee could take for this case.

Kostusev said at a meeting of the Antimonopoly Committee on July 15 that the Astelit company had withdrawn its request for the Antimonopoly Committee to review the decision to authorize the merger of Kyivstar and VimpelCom.

“Astelit withdrew its request a few days ago and wrote that it no longer had any questions or complaints,” Kostusev said.

However, he stressed that the withdrawal of the request was not important to the Antimonopoly Committee because a problem (a possible increase in the level of monopolization of the mobile communications market) had been uncovered and the committee intended to investigate it.

As Ukrainian News earlier reported, the Antimonopoly Committee suspended its permission for merger of the VimpelCom and the Kyivstar on April 22 after Astelit provided additional reasons to delay the merger.

The Antimonopoly Committee approved merger of the Kyivstar and the VimpelCom in March without additional provisions.

On October 5, 2009, the Altimo company (Russia) and the Telenor telecommunications company (Norway) agreed to merge Kyivstar and VimpelCom to create a new cellular communications operator, VimpelCom Ltd. (Bermuda islands), to provide integrated cellular communications services in Russia, Ukraine, and other member-countries of the Commonwealth of Independent States, as well as in Georgia, Vietnam, Cambodia, and Laos.

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