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 approves Valinge Croatia/Spin Valis merger

The Croatian Competition Agency (CCA) cleared in Phase I the concentration between the undertakings in the form of acquisition of direct controlling interest on a permanent basis over the undertaking Spin Valis d.o.o. and its connected undertakings by Valinge Croatia d.o.o.

 Both undertakings have been active in the wood processing sector – Valinge Croatia (Pervanovo Group) primarily as a producer of wood floorings and Spin Valis as a furniture producer and dealer.

Both parties to the concentration are horizontally overlapping in the production and distribution of certain product groups. Consequently, the defined relevant product markets include manufacturing and sale of furniture, sawn timber, wood components, wood panels, wood waste and wood briquettes, and purchase of tree trunks (technical wood) and firewood. The relevant geographic market covers the Republic of Croatia and the EU for all relevant product markets, apart from the purchase of tree trunks (technical wood) and firewood that are relevant exclusively in the territory of the Republic of Croatia.

Besides, only the acquiror is present in the manufacturing and sale of wood floorings in the Republic of Croatia and the EU, whereas only the target company is present in the production and sale of electricity and heat in the Republic of Croatia through its connected undertaking Spin Valis International.

Prior to the implementation of the merger concerned the parties to the concentration have had no vertical links, which is to be apparent in the post-merger period.

The purpose of the transaction concerned is internationalization of Spin Valis activities and proper and credible communication of know-how. In that sense, the transaction is expected to have procompetitive effects.

The CCA published on its official website the request for information from all interested parties with the view to receiving further written comments and explanations with respect to the concentration at issue and its possible effects on competition. No replies to this request for information were submitted to the CCA within the prescribed deadline.

Taking everything into account, the notified concentration was cleared in the first phase.