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NEWSLETTER 2011
154
It is stated in the notification form that, Longsheng would acquire the
control of Kiri Singapore, thus the control of Dystar from Kiri India and it
would have the exclusive control over the enterprise with the transaction
expected to be completed after obtaining the necessary permissions from
relevant competition authorities.
Relevant Market
The Authority defined the relevant product markets as “reactive
dyes”, “acid dye”, “disperse dye” and “metaphenylenediamin”; it defined
the relevant geographical market as “Turkey”.
The Nature of the Transaction Subject to the Notification
Longsheng has acquired a part of the shares of Kiri Singapore by
the transaction subject to the notification and by utilizing the convertible
bond that it acquired in accordance with the convertible Standby Bond
Agreement. It is stated within the frame of the information and documents
in the case that the control would be held by Longsheng after it converted
its convertible bond into the shares of Kiri Singapore in order to acquire
the shares of Kiri Singapore.
Pursuant to the transaction subject to the notification, it is defined as
an acquisition within the context of the Communiqué numbered 2010/4.
On the other hand, as stated in article 7 of the Communiqué the transaction
is subject to the permission as the limit of endorsement exceeded.
Nevertheless, when it is considered that the increase of assignee
enterprise’s market share after the transaction is not sufficient to become
a dominant player in the market; the competitors is still able to compete
with the entity that emerges after the transaction; the parameters in the
-affected by the transaction- market is determined by the global dynamics;
there is no obstacle to enter the affected market and potential competitors
are able to create competitive pressure in the market, it is come to the
conclusion that, within the frame of article 7 of The Act on the Protection
of Competition (“Competition Act”), as there will be no consequence of
generating or consolidating a dominant player in the market and by this
way no consequence of reducing the competition in the market, there will
be no inconvenience to allow the transaction.