ArmInfo. State Commission for the Protection of Economic Competition (SCPEC) of Armenia adopted an administrative proceeding on the concentration of telecommunication companies "Ucom" and "VEON Armenia".
To recall, on December 30, 2019, the companies turned to the State Committee for the Protection of Economics with a request for concentration. This, in particular, is about "Ucom's" intentions to acquire 100% of "VEON Armenia's" shares. According to the information provided, "VEON Armenia" was founded in 1995, providing fixed, mobile telephony and Internet access services, equipment sales. In 2018, the value of the company's assets amounted to 147.8 billion drams, and the amount of revenue - 38.4 billion drams. Ucom is a company registered in 1996, providing fixed-line telephony, mobile telephony, broadband Internet, IP-television services, and equipment sales services. In 2018, the assets of the latter amounted to 115.9 billion drams, and the amount of revenue - 40.7 billion drams. According to companies, the main purpose of concentration is to strengthen substantial competition in order to provide more favorable conditions for customers.
"While the decision has not been made, the commission is still analyzing the information received, today the first hearing is being held on this case. We turned to three government bodies - the Public Services Regulatory Commission, the Television and Radio Commission and the State Revenue Committee to understand the whole picture and dynamics The Commission also considers such cases on the international market, and also turned to international partners for professional assistance, "said Gegham Gevorgyan, Chairman of the SCPEC after a commission meeting and. He also explained that the SCPEC has 90 days from the date of application to make a decision. The Commission may decide to allow or prohibit the operation. Gegham Gevorgyan assured that the process will be transparent, and if any new information appears, it will be open to the public, with the exception of information containing trade secrets.
To recall, the VEON Armenia company, which owns the Beeline brand, officially announced negotiations with the Armenian Ucom company on the sale of its business in the republic on its website. At the end of December last year, it became known that Beeline in Armenia applied to the Public Services Regulatory Commission in order to obtain permission to sell its shares to Ucom. "These discussions can either end in a sale or not. In accordance with regulatory requirements, VEON will provide updated information if any," the message said. " VEON Armenia" CJSC (Beeline trademark) provides fixed and mobile communication services. Since April 2007, a 100% stake in VEON Armenia CJSC (formerly ArmenTel CJSC) has been owned by Veon Group of Companies, which is one of the world's largest integrated telecom operators.
