Concentration of Gavrilović and Puris Approved; Konzum and Lokica Conditionally

The Council for the Protection of Market Competition has deemed the concentration of the companies Gavrilović d.d. and Puris d.d. permissible, while the concentration of the companies Konzum d.d. and Lokica d.o.o. has been deemed conditionally permissible, it was announced today from the Council’s session.

Through the implementation of the concentration of Gavrilović and Puris, Gavrilović will acquire a market share of approximately 25 percent in the turkey meat market, so this concentration will not have negative effects on market competition, the statement notes. On the contrary, it is emphasized that the announced significant investments by Gavrilović in Puris, which has been facing economic difficulties for some time, could strengthen market competition in the white meat market and contribute to improving its asymmetric structure. Namely, Vindija d.d., as the market leader in the white meat market, holds a market share estimated at over 50 percent, the Council states. At the same time, the Council has assessed the concentration of the companies Konzum and Lokica as conditionally permissible, as it is a horizontal concentration of companies with relatively negative effects on the relevant market of retail trade in mixed goods (primarily food, beverages, and hygiene products) in the Šibenik-Knin County, particularly in the City of Šibenik and the places of Vodice and Murter, and with possible negative effects on the relevant market of wholesale trade in mixed goods in Croatia.

Therefore, the Council has set measures and conditions that the participants in the concentration must fulfill in order to ensure effective market competition in the relevant retail market in the specified areas through structural measures, while at the same time, measures for monitoring business in the relevant wholesale market in Croatia must ensure access to that market for the previous suppliers of the company Jolly-Jbs within a reasonable time, whose legal successor in the segment of wholesale and retail trade in mixed goods is Lokica. Specifically, this means, it is explained, that Konzum must sell or terminate lease agreements, or transfer to another entrepreneur four retail facilities in Šibenik, two in Vodice, and one in Murter, which it acquired through the implementation of the concentration from Lokica.

Additionally, Konzum has been ordered that Lokica, as a company under its control, must maintain all agreements that were in place until the establishment of the legal basis for the concentration of Lokica, or Jolly Jbs, with previous suppliers of all types of products for retail and wholesale sales for two years. Furthermore, the business conditions of Lokica, such as payment terms and conditions, and the volume of procurement arising from existing contracts concluded with Jolly JBS, must essentially be equal to or more favorable than those in the valid agreements, while simultaneously being non-discriminatory and transparent for all suppliers.

The Council has also imposed on Konzum the obligation to appoint, with prior consent from the Agency, an independent auditor who will monitor the implementation of the aforementioned measures over the next two years in order to eliminate the negative effects of the concentration on market competition. (Hina)