Communication
The aim of the protection of market competition is primarily to create benefits for consumers and equal conditions for all entrepreneurs on the market, who, acting in accordance with the existing rules and competing on the market with the quality, price and innovation of their products and services, contribute to the overall development of the economy.
MSREF and the owners of the shopping malls City Center One Zagreb West and East concentration clerance
The Croatian Competition Agency (CCA) cleared in the first phase the concentration on the basis of which the undertaking Morgan Stanley Real Estate Fund VIII Global-GP, L.P. (USA) acquires control over the undertakings Gradski centar and Manta from Zagreb, Croatia, the owners of the shopping malls City Center One Zagreb West and City Center One Zagreb East.
The concentration will be implemented in the property ownership, maintenance, management and renting of shopping malls areas in the territory of the City of Zagreb.
Morgan Stanley Real Estate Fund (MSREF) manages diverse real estate funds and is under control of the investment companies managed and/or consulted by Morgan Stanley, a company providing financial services with its seat in New York, USA.
City Center Zagreb One East and West are together with Arena Centar, Avenue Mall, King Cross, Supernova Buzin, Garden Mall and Westgate shopping centre the biggest competitors in the shopping malls segment in the City of Zagreb both in accordance with the visitor count data and the realised revenue.
MSREF is present in the commercial real estate management industry only in the hotel part thereof. Concretely, it will be present in this sector once the planned acquisition of one hotel in Croatia has been carried out. By acquisition of control over the undertakings Gradski centar and Manta, it is the first time MSREF has entered the property ownership, maintenance, management and renting of shopping malls areas in the territory of the City of Zagreb.
The concentration in question has been cleared in the first phase based on the notification documentation and other data available to the CCA on the basis of which it has assessed that the implementation of the said concentration would not produce significant effect on competition. In addition, no replies have been received to the CCA request for information.
Within the referral procedure the CCA analysed the notification of concentrations Sanofi / Google and Teva / Allergan Generics, given the fact that these undertakings are active in the Croatian market
In line with the EC Merger Regulation (Council Regulation (EC) No 139/2004) the so called concentrations with an EU dimension, in principle, producing effects in at least three Member States (cross-border effect) must be notified to the European Commission. The Commission then transmits the submission to all Member States competition authorities on the account of the fact that any Member State referred to in the reasoned submission may express its agreement or disagreement as regards the request to refer the case and deciding which of the authorities is well placed to deal with the case and no other competition authority raises objections.
In joint venture with Sanofi, Google, a technology company specializing in Internet-related services and products, is entering the activities relating to diabetes control and treatment through its subsidiary Verily Life Sciences.
The analysis carried out by the CCA showed that this concentration will have no significant effects in the Croatian market, whereas it will be assessed by the European Commission in the light of its European dimension as explained above.