Date: 3 months ago   Category: Industry

FAS refused to Pipe Metallurgic Company purchase of "daughter" of the Chinese Hilong Energy — Rambler News Service


The Federal Antimonopoly Service (FAS) of Russia refused to the Pipe Metallurgical Co. (PMC) acquisition of 100% of the Technologies of Drilling company which belongs to the Chinese Hilong Energy, reports department. According to FAS, the transaction will lead to restriction of the competition in the Russian market of boring pipes. "The transaction will lead to restriction of the competition in the market of boring pipes in the Russian Federation by reduction of number of the economic entities which are not entering into one group of persons including as a result of emergence of a dominant position of a group of persons of PJSC Pipe Metallurgic Company and LLC Tekhnologii bureniya in the market of boring pipes in the Russian Federation" — it is said in the statement. Department notes, as a result of transaction of Technologies of Drilling capacities for production of boring pipes of LLC Technomash will be transferred. According to petition materials, Technomash is included into one group of persons with the Technologies of Drilling company. The analysis of a condition of the competition which is carried out by FAS in the market of boring pipes showed that Pipe Metallurgic Company is the largest producer of boring pipes in Russia: in 2017 the share of a group of persons of Pipe Metallurgic Company in the market of boring pipes in the Russian Federation makes more than 35%. In turn, Technomash since 2016 carries out production of boring pipes, in 2018 Technomash increases production capacities. According to data of the Spark system, the head company of Technologies of Drilling is TD "Haylon Rus" which 99% belong to the Chinese Hilong Energy the Technomash Company enters is Hilong Group holding.

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