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Case No COMP/M.7140 - SISTEMA/ SEGEZHA PULP AND PAPER MILL

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REGULATION (EC) No 139/2004 MERGER PROCEDURE

Article 6(1)(b) NON-OPPOSITION Date: 04/07/2014

In electronic form on the EUR-Lex website under document number 32014M7140

Office for Publications of the European Union L-2985 Luxembourg

EUROPEAN COMMISSION

Brussels, 4.7.2014 C(2014) 4832 final

PUBLIC VERSION

SIMPLIFIED MERGER PROCEDURE

To the notifying party:

Dear Madam(s) and/or Sir(s),

Subject: Case M.7140 – SISTEMA/ SEGEZHA PULP AND PAPER MILL Commission decision pursuant to Article 6(1)(b) of Council Regulation (EC) No 139/2004

1.On 11 June 2014, the European Commission received notification of a proposed concentration pursuant to Article 4 and following a referral pursuant to Article 4(5) of the Merger Regulation by which the equity investment group Sistema JSF Corporation ('Sistema', Russia), which is ultimately controlled by Mr Vladimir Evtushenkov, intends to acquire within the meaning of Art. 3 (1)(b) of the Merger Regulation sole control of the undertakings JSC Segezha Pulp and Paper Mill ('SPPM', Russia) and Limited Liability Company Derevoobrabotka-Proekt ('DoP', Russia).

OJ L 24, 29.1.2004, p. 1 ("the Merger Regulation"). With effect from 1 December 2009, the Treaty on the Functioning of the European Union ("TFEU") has introduced certain changes, such as the replacement of "Community" by "Union" and "common market" by "internal market". The terminology of the TFEU will be used throughout this decision.

Commission européenne, DG COMP MERGER REGISTRY, 1049 Bruxelles, BELGIQUE Europese Commissie, DG COMP MERGER REGISTRY, 1049 Brussel, BELGIË

Tel: +32 229-91111. Fax: +32 229-64301. E-mail: COMP-MERGER-REGISTRY@ec.europa.eu.

The business activities of the undertakings concerned are:

- for Sistema: investments in various sectors of the economy, including telecommunication, oil, electric power, consumer goods, high tech and other industries;

- for SPPM: manufacture and sale of kraft paper and paper sacks as well as products closely linked with these principal activities such as manufacture and sale of wood pulp, cardboard, wood chemical products and certain timber products such as sawn timber, plywood and wood chips; and

- for DoP: timber processing and forestry production, including activities in plywood, timber and certain timber products such as wood chips and laminated beams

2.After examination of the notification, the European Commission has concluded that the notified operation falls within the scope of the Merger Regulation and of paragraph 5(b) of the Commission Notice on a simplified procedure for treatment of certain concentrations under Council Regulation (EC) No 139/2004.

4.For the reasons set out in the Notice on a simplified procedure, the European Commission has decided not to oppose the notified operation and to declare it compatible with the internal market and with the EEA Agreement. This decision is adopted in application of Article 6(1)(b) of the Merger Regulation.

For the Commission (signed) Alexander ITALIANER Director General

2Publication in the Official Journal of the European Union No C 187, 19.06.2014, p.6.

3OJ C 366, 14.12.2013, p. 5.

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