Zagreb, 29 July 2010 – The Competition Council accepted the report of the divestiture trustee in the case Mol/Ina on the basis of which it approved the sale of the undertaking Crobenz d.d. to the proposed buyer, Lucoil Croatia d.o.o., within the commitments undertaken as laid down in the decision of the Croatian Competition Agency (CCA) of 9 June 2009 on the conditionally approved concentration between Mol and Ina. Lucoil, as a suitable purchaser, is independent of and unconnected to the parties, it possesses the financial resources and proven relevant expertise and according to the CCA the new business between Lucoil and Crobenz is not likely to create new competition concerns in the relevant market concerned.

The Competition Council also cleared the concentration between the undertakings Atlantic Grupa and Droga Kolinska. Atlantic Grupa acquisition of Droga Kolinska will be implemented outside the territory of the Republic of Croatia but is nevertheless subject to the assessment of the CCA taking into account its possible effects in the Croatian market. By this acquisition, Atlantic Grupa enters new markets, such as the sales of bottled water, coffee, pates and spreads, and increases its market share in the sales of non-alcoholic drinks and salty snacks. Its market share in the sales of bottled water and coffee will remain under 5 %, in the sales of pates and spreads between 5 % and 10 %, while it will hold some 10 % to 15 % of the non-alcoholic drinks and salty snacks market. Thus, it is the view of the CCA that the said concentration will not produce significant anticompetitive effects in the markets concerned.

The CCA authorised the government’s Operating aid scheme for maintaining competitiveness of the textiles and leather and apparel industry for 2010 worth HRK 60 million, ensured in the state budget for 2010. The aid provider is the Ministry of the Economy, Labour and Entrepreneurship which will grant operating aid in the form of grants and in accordance with the requirements listed in the public tender. Aid will be used for permanent working capital and for initial investments in equipment and machinery, purchase of patents and licenses, know-how etc. Aid intensity for initial investment will depend on whether the beneficiary is a small or medium enterprise or a big firm and on the NUTS classification unit in accordance with the regional aid map. However, aid may not exceed HRK 2.5 million per undertaking. On the other hand, financing of the permanent working capital for the maintenance of the business activities and employment level of the undertaking concerned may not exceed 10 % of the necessary permanent working capital and the amount of EUR 500 000 (equivalent in HRK) per undertaking, including any de minimis aid granted until 31 December 2010. Aid under this programme may not be granted to firms in difficulty. Yet, it may be granted to undertakings which, in line with the state aid rules, were not in difficulty on 1 July 2008 but entered into difficulty thereafter due to the global financial and economic crisis.