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 STUDENAC/PEMO merger

The Croatian Competition Agency cleared in phase I the concentration between the undertakings in the form of the acquisition of a direct controlling interest on the permanent basis over the undertaking Pemo, by the undertaking Studenac. This horizontal merger will produce effects in the groceries retail market of Dubrovnik – Neretva County and indirectly the Town of Dubrovnik, where the activities of the parties to the concentration overlap and where Studenac will take over the market position of Pemo.

By the implementation of the above-mentioned concentration Studenac will take the lead in Dubrovnik – Neretva County and the Town of Dubrovnik where competitive constraints are present and exerted by the powerful national store chains like Lidl, Konzum and Tommy, the five prime rivals.

In the post-merger period Studenac will keep competing with the big store chains mentioned above but also with a number of small shops that are present in the geographic market concerned. The assessment confirmed that taking into account the market structure, the number of undertakings in the market and the diversity of shop formats, it is hardly likely for any anti-competitive effects to occur. Final consumers will continue to have a large choice whereas both the incumbent undertakings or any new entrants will be motivated to compete in the relevant market concerned.

Taking everything into account it cannot be assumed that the proposed concentration could produce any anti-competitive effects in the market.