The acquisition of Sygnity by Asseco Poland has been approved by UOKiK, Poland's competition authority.
Asseco Poland belongs to an international group of over 60 companies operating worldwide and is one of the leaders in the Polish IT market. Sygnity is a direct competitor. Both companies are listed on the Warsaw Stock Exchange.
UOKiK approved the acquisition after deciding that it would not significantly restrict competition. Before issuing the decision, UOKiK sent a survey to 47 companies operating in the IT market and to some selected clients of Asseco Poland and Sygnity. Asseco Poland and Sygnity were found to compete in IT services for banking, public administration, media, industry, utilities, wholesale and retail trade.
Asseco Poland's acquisition of Sygnity is an interesting example of a hostile takeover transaction as it did not involve consultation with Sygnity's Management Board. Its offer to purchase 100% of Sygnity's shares was placed on the Warsaw Stock Exchange in late February 2012 and made conditional upon UOKiK's consent. The clearance decision was required by 9 July but came two days after the deadline. However, Asseco Poland may place another bid on the stock exchange in the future.
Polish competition law requires UOKiK to be notified of an intended merger where the combined turnover of the merging parties in the preceding financial year exceeds €1 billion worldwide or €50 million in Poland.
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
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The original publication date for this article was 16/07/2012.
