Federal Antimonopoly Service in Chelyabinsk Region rejected the application of Astra-Metal of Magnitogorsk to buy 98.45% of Yuzhniy Ural Medical Insurance Company today.

The Service had conducted research on the state of competition in the field of obligatory medical insurance in Chelyabinsk Region and found out that Astra-Metal already possessed the 76.9% share of the regional market.

The transaction would result in the merger of the two companies and together, they would have 81.8% percent of the market, which would highly concentrate it, made the two companies dominant and eliminate any competition.

Meanwhile, Federal Antimonopoly Service in Chelyabinsk Region decided to lay a claim against Astra-Metal Ltd., charging it with administrative offense, that is, failing to present application to buy 43.28% percent of RAVIS-MeSK Ltd. This contradicts the antimonopoly legislation and could result in 100- to 500-thousand ruble fine. This transaction will be investigated and is likely to lead to enforced market policies upon the accused.