The acquisition by Yandex (MCX: YNDX) of TCS Group will require the approval of the Federal Antimonopoly Service (FAS) of Russia, Olga Sergeeva, head of the financial markets control department of the FAS, told Interfax.
“As part of such an agreement, the intersection of the activities of the companies participating in the transaction and their groups of persons will be analyzed, as well as the possible effects on the state of competition in the respective markets will be assessed,” she said, noting that such an analysis will be carried out already in the event of a request.
It is too early to assess the possible risks, the regulator said.
The planned deal, under which Yandex may become the owner of 100% of TCS Group shares, became known on Tuesday evening. Yandex has previously agreed to purchase TCS for $ 5.48 billion in cash and its own shares, the deal will require the consent of the Internet company's shareholders. The deal could go through at $ 27.64 per TCS Group share, which means an 8% premium to the closing price on September 21.
The main shareholder of TCS Group is Oleg Tinkov, who owns 40.4%. In March 2020, he transferred the rights to his share in the family trust. The group's management owns 6.5%.