The Competition Development Committee has launched a probe against the Orient Group Management holding, the press service of the Committee said today.

Reportedly, Orient Group Management acquired a 45% stake in the Highway Logistics Center transport and logistics center by increasing its authorized capital, but did not receive the consent of the antitrust authority.

According to the Competition on, government oversight over economic concentration is exercised if the book value of assets or revenue from the sale of goods for the last calendar year of one of the business entities participating in a merger or obtaining more than 25% of the voting shares of a company or up to 1/3 of a share in an LLC exceeds 250,000 times the base calculation value (85 billion soums), or the total book value of their assets or revenue from the sale of goods for the calendar year is over 500,000 times the base calculation value (170 billion soums).

In such transactions, prior consent from the antimonopoly authority is required.

The special commission of the committee launched a case against Orient Group Management, found it guilty of violating Article 26 of the law and imposed a fine.

Orient Group Management went to court to challenge the decision, the statement added.

The committee also opened a case against the Uzbek-Oman Investment Company (UOIC, 75% owned by the Oman Investment Authority, 25% by the sovereign Uzbekistan Fund for Reconstruction and Development), which on July 23 also acquired 45% of Highway Logistics Center without the consent of the antitrust authority. The company was also fined.

About the companies

Highway Logistics Center was founded on September 8, 2017, the authorized capital is 185.67 billion soums. At the beginning of May, the company was owned by Logistics Orient (99%) and Jakhongir Polatov.

Today, the shares are distributed as follows: Logistics Orient — 50.86%, Uzbek-Oman Investment Company — 49.12%, Jasur Alisherovich Sultanov — 0.02%.

Orient Group Management is owned by Rauf Mirzaevich Kamiljanov (44.99%, including shareholder of Garant Bank), Saken Polatov (33.5%, founder of Orient Group, chairman of the supervisory board of Orient Finans Bank) and Paizullajon Mirzaev (16.5%, founder of Orient Group)

The company also owns the Makro grocery chain (Darvoza Savdo) and the Bektemir metalworking plant.