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.

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CCA clears Žito’s acquisition of Mesna industrija Ravlić

The Croatian Competition Agency (CCA) has cleared in Phase I the proposed concentration resulting from the acquisition of direct, sole control by Žito d.d., a company based in Osijek and active in production and trade, over Mesna industrija Ravlić d.o.o., also based in Osijek.

The transaction consists of Žito acquiring 51% of the share capital in Mesna industrija Ravlić, thereby obtaining sole control over the company within the meaning of Article 15 paragraph 1 item 2 of the Competition Act, OG 79/09, 80/13, 41/21 and 155/23.

On 26 September 2025, the CCA published on its website a request for information from interested parties regarding the proposed concentration. During the consultation period, which ran until 6 October 2025, the CCA did not receive any comments or observations.

Activities of the parties

Žito d.d. operates in the agri-food sector, carrying out activities across four principal business areas:

  1. Crop production (cereals, oilseeds, and industrial crops),
  2. Livestock farming (pig breeding, cattle fattening, milk and egg production),
  3. Industry (production of animal feed, vegetable oils, and meat products), and
  4. Trade and services (hospitality, sale of agricultural products and inputs, and provision of silo and storage services).

Mesna industrija Ravlić d.o.o. is active in the production of meat and meat products, wholesale and retail trade in meat and meat products, crop production, and the provision of cattle fattening and slaughtering services.

The undertakings concerned operate in several horizontally and vertically related markets, including the markets for crop production, meat and meat products, wholesale and retail trade in meat and meat products, and trade in cereals and oilseeds.

Market assessment

In most of the relevant markets, the parties hold low market shares, while the main competitors are undertakings belonging to larger food producing groups, such as PIK Vrbovec plus d.o.o., Grupa Pivac, and Gavrilović.

In the market for the production and import of meat products, the combined market share of Žito and Mesna industrija Ravlić post-merger amounts to up to 10%, while in other relevant markets their combined shares do not exceed 5%.

Given the large number of competitors and the stable market structure, the CCA found that the transaction would not lead to significant changes in market shares nor restrict effective competition.

Assessment of effects

The CCA further considered that the concentration could generate efficiency gains, including the preservation and potential expansion of domestic production for the benefit of consumers. The transaction may also give rise to synergies, such as more favourable procurement conditions for energy and raw materials and improved operational efficiency and competitiveness.

Based on the information submitted and other available data, the CCA concluded that the transaction does not raise competition concerns within the meaning of Article 16 of the Competition Act.

It does not lead to the creation or strengthening of a dominant position, nor to a significant impediment to effective competition in any of the relevant markets in the Republic of Croatia.

Conclusion

Accordingly, the Croatian Competition Agency has cleared the concentration in Phase I, pursuant to Article 22 paragraph 1 of the Competition Act.