Member Article

The new issue of Legal Insight magazine includes a timely article by Anastasia Kayukova, Senior Associate at ALRUD Law Firm, and Anastasia Sidorenko, Junior Associate at ALRUD Law Firm. It is dedicated to the difficulties of determining the criteria, by which the FAS of Russia (Federal Antimonopoly Service) assesses the need to approve transactions related to the acquisition of “de facto” control rights.

In the article, the authors have detailed the specifics of Russian legislation in relation to the acquisition of “de facto” control. They have supported this with some vivid examples of violations of the requirements for the approval of transactions with the FAS of Russia. Further, they assessed the possibility of different interpretations of these issues, from the point of view of anti-monopoly legislation.

Antimonopoly Issues of Establishing Effective Control in M&A Transactions and More

At present, FAS Russia is actively working to identify and prevent the establishment of control obtained without appropriate approval. Investors, of course, do not want to be violators, but they would like to be promptly informed about the rules of the game. Despite the rather specific position of the FAS Russia, in practice, difficulties arise in determining the need to coordinate transactions in some cases of acquiring control rights. What are the criteria for determining the actually exercised control, and in what cases the acquisition of a minority block of shares (stakes) or individual corporate rights, as well as the implementation of economic or administrative control are recognized as the establishment of control from an antimonopoly point of view? Read about this in the article by Anastasia Kayukova and Anastasia Sidorenko.

The new issue of Legal Insight magazine (in Russian language) is available here.

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