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 merger between Tommy and Brodokomerc Nova
The Croatian Competition Agency (CCA) 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 Brodokomerc Nova, by the undertaking Tommy. This is a horizontal merger in the groceries retail market (retail market in food, beverages, toiletries and household supplies) in the territory of the Republic of Croatia, particularly in Primorje-Gorski Kotar County.
After having received the complete notification of the concentration concerned on 9 September 2024 the CCA published the request for information from all interested parties with the view to receiving further written comments and explanations with respect to the market situation and the likely effects of the concentration at issue on its website. No replies to this request for information were submitted to the CCA within the prescribed deadline.
The acquisition of Brodokomerc makes evident the intention of Tommy to further strengthen its position in Primorje-Gorski Kotar County and enter the segment of smaller retail formats, thereby raising competitive constraints of its rivals both in the territory of Primorje-Gorski Kotar County and across the Republic of Croatia.
On the national level, based on the data for 2023, following the implementation of the concentration in question, Tommy will retain the 6th position in the market ranking and achieve a post-merger market share of [5-10%].
Taking all of the above into account, as well as the fact that the post-merger market share in Primorje-Gorski Kotar County will be relatively low, around [5-10%], it is not likely that the proposed concentration could produce significant anti-competitive effects in the market, as this concentration does not create or strengthen a dominant position of its participants.