KYIV. 1 September. UNN. The Antimonopoly Committee of Ukraine returned the application for approval of the purchase of Motor Sich PJSC shares to DCH Group without consideration. It was posted on the official website, UNN reports.
The post states: ‘The AMCU did not accept the application for consideration. The text lists a number of technical procedural points justifying the committee’s decision, and the AMCU made a request for additional information,’ said DCH.
Justifying the return of documents for the approval of the transaction, the AMCU requested data on the equipment produced by the companies for the agricultural sector, which is not the core business of the aircraft engine manufacturer PJSC Motor Sich.
‘To additionally specify whether agricultural products of PJSC Motor Sich (potato planters, potato diggers, harrows, plows, cultivators, mounted rotary mower) could be used as suspension (additional) equipment for tractors manufactured PJSC KhTZ? If yes, provide additional information,’ the AMCU’s response requires it from the applicant companies.
Vladimir Tsybulko, a well-known Ukrainian expert, notes that the production of agricultural machinery has nothing to do with the production of aircraft engines. And even if the AMCU is trying to find ‘a ghost of monopolization’ here – two manufacturers of different equipment will not be able to influence the balance of power in the agricultural machinery market since this market is highly competitive.
‘It is quite a wild reply from the AMCU,’ Tsybulko commented on the DCH message. ‘The main interest of the deal is the “aircraft and engine” business of Motor Sich. According to the specific logic of the AMCU, DCH is ‘striving to fly’ and planning to fasten aircraft engines to KhTZ tractors? We have already had a ‘submarine in the steppes of Ukraine’. Will there be a new meme ‘Kharkiv tractor with a turbo engine’? Well, it is just ridiculous!’ the expert was indignant.
According to Tsybulko, the Ukrainian market of agricultural machinery and suspended equipment is very competitive, and there can be no monopolization.
‘OK, Motor Sich has a non-core business for the production of agricultural machinery, and DCH produces tractors at KhTZ. Winnower seeders, plows and cultivators – the Ukrainian market is filled with this agricultural equipment from different manufacturers, and sellers are literally fighting for every buyer! The market is both highly competitive and fragmented. I'm sure many of its operators would dream of some kind of concentration, but it is unreal,’ Vladimir Tsybulko described the situation on the agricultural equipment market and the absurdity of the AMCU's questions.
The expert expressed his assurance that the AMCU is looking for any excuses to just play for time – not to refuse to agree on the concentration of PJSC Motor Sich shares, but not to allow it, while not violating the law.
‘The lawyers have already stated during the hearing that the case of the arrest of Motor Sich’s shares is thoroughly politicized. And the AMCU clearly proves it by its actions,’ the expert said.
As reported a month ago, DCH Group and Chinese company Skyrizon Aircraft Holdings Limited reached an agreement on the joint development of the Ukrainian aircraft industry, starting with JSC Motor Sich in Zaporizhzhia. Chinese investors from Skyrizon and DCH submitted a joint application to the Antimonopoly Committee of Ukraine (AMCU) for the purchase of PJSC Motor Sich shares on August 4. Beijing Xinwei Technology Group, a Skyrizon affiliate, has disclosed this information on the Shanghai Stock Exchange.
Before it, the Chinese company had submitted a similar application to the AMCU together with the state concern UkrOboronProm, but the state concern announced that the application is no longer relevant.
The strengthening of the influence of the Office of the President on the AMCU was recently vigorously discussed by the expert environment: Vladimir Zelenskyi appointed Olga Muzychenko as Deputy Head of the Committee by his decree. As it is known, her husband Sergei Sendzyuk donated half a million hryvnia for the election campaign of the frontman of the Servant of the People party in the presidential elections.
As it became known, Ukraine entered the TOP-3 of the global ranking of potato-producing countries at the end of 2019 with an indicator of 23 million tons of harvest. In terms of potato production, only China (93 million tons) and India (51 million tons) surpassed Ukraine, Agronews reports. Together, these three countries provided 45% of the global potato production.
