OREANDA-NEWS.  July 26, 2013. The Federal Antimonopoly Service (FAS Russia) approved a petition of “M.video Management” Ltd. on purchasing 100% shares of the authorized capital of “ELDORADO” Ltd. and simultaneously issued a determination to “M.video Management” Ltd. to exercise actions in the Russian Federation aimed at supporting competition.

For instance, within six months upon completing the transaction “M.video Management” Ltd. shall have to stop its operations of “M.video Management” Ltd. and (or) “ELDORADO” Ltd. on the part of trading facilities in 35 constituent territories of the Russian Federation in order to reduce their total share on the retail markets of household goods and audio-and-video equipment in each of these constituent territories of the Russian Federation to 35% and give their competitors an opportunity to use the free areas.

In particular, it will be necessary to terminate lease and sub-lease contracts and allow independent third parties to use the company-owned trading facilities.

The 35 regions include: the Volgograd, Irkutsk, Vologda, Yaroslavl, Belgorod, Arkhangelsk, Moscow, Kursk, Orel, Pskov, Tambov, Tomsk, Kaluga, Omsk, Kostroma, Kemerovo, Ulyanovsk, Ryazan, Astrakhan, Vladimir, Kirov, Ivanovo, Novosibirsk, Nizhniy Novgorod, Krasnodar, Stavropol, and Perm regions, Moscow, and the Republics of Marii-El, Tatarstan, Buryatia, Mordovia, Kabardino-Balkaria and Chuvashia.

“M.video Management” Ltd. also must provide possibilities for non-discriminatory access of suppliers to the retail markets of household goods and audio-and-video equipment and do not prevent entry of suppliers to these markets if its group of persons exceeds the 35% share.

The determination will reduce shares of “M.video Management” Ltd. and “ELDORADO” Ltd. in the regions where they have the leading position, and enable their competitors to increase their sales on the free areas.