TBILISI, Georgia — Georgian President Mikhail Saakashvili on Tuesday conceded defeat in the parliamentary election and said an opposition coalition led by a billionaire businessman now has the right to form a government.

The concession belied opposition claims that the government intended to steal Monday's election, and allowed Saakashvili to preserve his legacy as a pro-Western leader who brought democracy to the former Soviet republic that he has led for almost nine years.

It also preserved calm on the streets of the capital Tbilisi, where support for the opposition Georgian Dream coalition is strongest. Opposition supporters had boisterously celebrated their victory throughout the night.