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 acquisition of direct controlling interest over Ruris Agro by Agronom
In the case at hand the notification of concentration relates to acquisition of direct controlling interest over the undertaking Ruris Agro d.o.o. by the undertaking Agronom (part of Agrofert Group based in the Czech Republic that is active in industries related to the chemical industry, food industry, agriculture, distribution of farming and construction machinery and vehicles, as well as activities related to the forestry sector, renewable energy sources and fuels, logistics, and media. Ruris Agro, based in Županja performs the activities in the market, such as the purchase and wholesale of grains and oilseeds (mainly wheat and soybeans) and the wholesale and retail of farming materials (fertilizers, seeds, plant protection products, and other raw materials).
A complete notification of the concentration between these undertakings was received on 11 June 11, 2024, followed by the CCA request for information on its website for all interested parties to submit comments and opinions on the concentration, so that the collected data could contribute to clarifying and better understanding the situation on the relevant markets.
The concentration concerned will primarily produce effects in the purchase of grains and oilseeds (commodities) market, the wholesale of grains and oilseeds (commodities), the wholesale of raw materials (seeds, fertilizers, and plant protection products), and the retail of seeds, fertilizers, plant protection products, and other raw materials in specialized stores (so-called agricultural pharmacies) in the Republic of Croatia.
Additionally, Agronom is present in the territory of the Republic of Croatia in contracting field agricultural production with cooperators, trading and servicing tractors and other agricultural machinery, producing animal feed, seed wheat, barley, and soybeans, fattening pigs and cattle, and field agricultural production and seed production.
By implementing the concentration in question, Agrofert aims to achieve additional diversification and deepen synergy in the scope of operations of the participants to the concentration, given that even before the concentration, they were suppliers of agricultural raw materials to each other, and considering that Agrofert has so far been less present in the area where Ruris Agro operates.
Consequently, it is not likely that this concentration could have any anticompetitive effects it does not create new or strengthen a dominant position of the participants to the concentration.