OREANDA-NEWS. On March 26, 2007 the Federal Antimonopoly Service (FAS Russia) granted an application of the "VBM Group" to buy the controlling blocks of shares of:
- "Uralburmash" OJSC
- "Volgaburmash" OJSC, reported the press-centre of  FAS Russia.
The merged company will control:
- 83% of the Russian market of drillings bits for oil and gas industry
- 82% of the Russian market of bore bits for mining industry
Following the control transaction, the "VBM Group" will gain the 5th position on the global market of drilling bits with the share of 10-15%. The Group will control up to 85% of the Russian market (including imports).
Having analyzed the market, FAS Russia found that the control transaction, with due consideration of conditions specified in the decision on the application, may lead to monopolistic activity and restriction of competition on the market of drilling bits.
Therefore, FAS Russia, being governed by Article 13 of the Law "On Competition" and taking into account the economic effect of the transaction, made a decision to grant the application subject to instructions issued to the "VBM Group" оn acting towards competition protection.