Successfully represented Gintarinė vaistinė, owned by a Polish listed pharmaceuticals group, in a merger control investigation before the Lithuanian Competition Council. The investigation was initiated by the Competition Council in regard to a failure of newly subsidiary engaged in pharmaceuticals retail to notify the acquisition of 67 per cent of shares in UAB Thymus pharmacy to the Council.
The case was unique as it is one of the first investigations in Lithuania that were initiated after voluntary disclosure of a potential failure to notify on merger by the undertaking concerned, and no fine setting practice/guidance was available at the time of the investigation.
The breach of competition laws was committed in the pharmacy chain Litfarma pharmacy which was later acquired by Gintarinė vaistinė. Our team identified the potential breach at the state of legal due diligence of Litfarma pharmacy and ensured that the breach is indemnified under the shares sale-purchase agreement, and presently our client is the senior adviser on the investigation in cooperation with legal advisers of the former shareholders of Litfarma pharmacy.
The Competition Council withdrew the investigation due to introduction of more lenient requirements on merger notification under the Lithuanian Law on Competition after the concentration, which had retrospective effect to the case in question.