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21 July 2010

Sayenko Kharenko successfully defended Dyckerhoff in the anti-trust proceedings

The antitrust team of Sayenko Kharenko successfully represented companies of the Dyckerhoff group (“Dyckerhoff”) before the Antimonopoly Committee of Ukraine (the "AMC") in the case of an alleged abuse of dominance.

At the end of 2008 the AMC initiated an investigation against Dyckerhoff and a number of other large Ukrainian cement producers, alleging an abuse of market power. The cement producers were accused of lifting up prices for cement products to the levels which could not be gained in the absence of such power. The investigation was inspired by the attempts of the Ukrainian government to control the increase of prices in Ukraine’s real estate and related markets.

Dyckerhoff provided detailed cost analysis, factual statements and elaborate legal arguments to prove that the demand-pull inflation during the relevant period led to price fluctuations in the cement market in Ukraine. Having examined the explanations and factual evidence collected in the course of its investigation, the AMC concluded that the prices set by Dyckerhoff were feasible and fairly reflected the market environment. After lasting deliberations, the AMC concluded that no violation of Ukrainian competition laws in the form of abuse of dominance had occurred.

“Dyckerhoff is a large European company with a strong corporate culture that respects the laws of every jurisdiction where it operates. We provided elaborate explanations arguments to the AMC and were delighted to learn that the AMC dropped all abuse of dominance charges against Dyckerhoff. The credit for this result and the outstanding work should go to the expertise and dedication of our trusted legal advisor. Vladimir Sayenko and his team have once again showcased seamless quality of legal advice and a hard working ethics.” – comments Paolo Zelano, Country Manager for Dyckerhoff in Ukraine.

“We are delighted that our firm was entrusted with this challenging assignment when the AMC initiated its investigation. This was the first major in the general market of construction materials, which resulted in the decision of the AMC and created an important precedent. The Dyckerhoff case required significant effort from our team and enriched us with unique expertise and profound understanding of the relevant market and the most recent practices of the AMC. We are proud that it was resolved within a reasonable timeframe and to the full satisfaction of the client” – comments Vladimir Sayenko, the partner in charge of the antitrust practice at Sayenko Kharenko.

Dyckerhoff AG is a member of Buzzi Unicem Group, together they form a world-wide spread conglomerate of companies producing cement and concrete. Dyckerhoff’s headquarters is located in Wiesbaden, Germany. Buzzi Unicem’s headquarter is located in Casale Monferrato, Italy. Buzzi Unicem – Dyckerhoff Group has production facilities in Italy, Germany, Netherland, the USA, Mexico, Algeria, Luxembourg, Czech Republic and Slovakia, Poland, Russia and Ukraine.

Sayenko Kharenko competition team included counsel Dmitry Taranyk and associate Valentyna Hvozd, led by partner Vladimir Sayenko.

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