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.
CCA clears the acquisition of joint control over SEE Bakery Topco (Mlinar) by FFR and SEE Bakery International
In this case, the Croatian Competition Agency (CCA) assessed the notification of a proposed concentration arising from the acquisition of joint control on a permanent basis by the undertakings FFR (a member of the Bosqar Invest Group) and SEE Bakery International (a member of the MidEuropa Group) over the undertaking SEE Bakery Topco, headquartered in Luxembourg, and thereby indirectly over the undertaking Mlinar.
Prior to this concentration, sole control over SEE Bakery Topco—and indirectly over Mlinar—was exercised by SEE Bakery International.
The concentration will primarily produce effects on the following relevant markets:
- production and import of bakery products in the Republic of Croatia;
- wholesale and retail in bakery products in the Republic of Croatia;
- wholesale in bakery products in the European Union and the neighbouring non-EU countries.
Among the involved parties, only Mlinar is active on the relevant markets.
The implementation of this concentration results solely in a change of sole to joint control over the target undertaking—and thus indirectly over Mlinar, without affecting the structure of the relevant markets.
Mlinar, as the sole participant active on the relevant markets, engages in the production of bakery products through four production facilities located in Zagreb, Osijek, Šibenik, and Poreč. It also imports bakery products from abroad, which are then distributed via wholesale and retail networks within Croatia.
It is important to note that the Bosqar Invest Group, through FFR, is entering the relevant markets for the first time through this concentration. On the other hand, SEE Bakery International, which already exercises control over the target undertaking, is already present on the markets via Mlinar. Consequently, there is no horizontal overlap between the parties to the concentration.
Furthermore, the concentration does not entail any vertical integration, as none of the parties is active in upstream or downstream markets in relation to the defined relevant markets.
Based on the above findings, it can be reasonably assumed that this is not a prohibited concentration within the meaning of Article 16 of the Competition Act, as it is not likely to significantly impede effective competition, particularly because the concentration does not create or strengthen a dominant position of the parties involved.