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 concentration between PODRAVKA AGRI d.o.o. and BELJE plus d.o.o., PIK VINKOVCI plus d.o.o., VUPIK plus d.o.o., Energija Gradec d.o.o., BELJE AGRO-VET plus d.o.o. and FELIX plus d.o.o.
The Croatian Competition Agency (CCA) cleared in the first phase the transaction on the basis of which PODRAVKA AGRI d.o.o, acquires direct controlling interest on a permanent basis over the undertakings BELJE plus d.o.o., Darda, PIK VINKOVCI plus d.o.o., Vinkovci, VUPIK plus d.o.o., Vukovar, Energija Gradec d.o.o., Sesvete, BELJE AGRO-VET plus d.o.o. , Mece, and FELIX plus d.o.o., Vinkovci.
Concretely, by the implementation of the concentration concerned PODRAVKA AGRI d.o.o. – a member of the Podravka Group, acquires direct control over the above listed undertakings that have until now operated as members of the Fortenova Group.
The business operations of the acquired undertakings can be divided into two main areas: the production of primary agricultural products in crop farming and livestock breeding, and the production of food products (for both humans and animals). These areas include pig, cattle, and dairy cow farming; the production of animal feed, milk, and dairy products; processed meat products; crop farming; the cultivation of tomatoes in greenhouses; viticulture; and wine production.
The concentration of the undertakings concerned will primarily produce effects on the following markets within the territory of the Republic of Croatia:
- the production (cultivation) of arable crops (cereals, oilseeds); the market for the purchase of arable crops (cereals, oilseeds); the wholesale market for cereals and oilseeds (mercantile goods); the production (cultivation) of vegetable crops (industrial peas, table tomatoes, onions); the market for the purchase of table fruit and vegetables; the wholesale market for table fruit and vegetables; the market for silo services; the market for the production (breeding) and import of live animals for slaughter (pigs, cattle); the market for the purchase of raw milk; the market for the production and import of milk and dairy products (milk, cheese, yogurt, cream); the market for the production and import of flour; the market for the production and import of wine; the market for the production and import of processed meat products (from pork); the retail market in specialized stores (so-called agricultural pharmacies); the retail market in specialized shops (factory outlets, etc.); and the market for the production and sale (wholesale) of electricity.
After receiving the complete notification of the concentration between these undertakings, on 27 December 2024 the CCA published the request for information on its website for all interested parties to submit comments and opinions on the proposed concentration, so that the collected data could contribute to clarifying and better understanding the situation on the relevant markets. Until the prescribed deadline of 7 January 2025, no reply to this request for information was submitted to the CCA.
Based on the complete notification of concentration, the defined structure of the relevant market that involved both actual competitors (incumbents) and potential competitors, the post-merger market share of the parties to the concentration, expected effects of the concentration in the form of benefits for the consumers, as well as other data and findings, the CCA found that it can be reasonably presumed that this concrete concentration would not constitute a prohibited concentration in the sense of Article 16 of the Competition Act. In other words, it is not likely that this concentration could have any anticompetitive effects in the relevant markets concerned as it does not create new or strengthen a dominant position of the participants to the concentration in these relevant markets.
Taking all the above said into account the notified concentration shall be cleared in the first phase in line with Article 22 paragraph 1 of the Competition Act.
The full version of the non-confidential CCA decision in the Croatian language is available here