SERBIA Trends and Developments Contributed by: Uroš Popović and Tina Petrić, Drašković Popović & Partners
Insights from Serbia’s Latest Concentration Control Cases Continued Ex Officio Atlantic Grand d.o.o. Belgrade – Strauss Adriatic d.o.o. Šimanovci The Commission has concluded the popular and media-covered procedure of examining the concentration notified to it between Atlan - tic Grand d.o.o. – Belgrade and Strauss Adri - atic – Šimanovci. The Commission conditionally approved the concentration, and the investiga - tive procedure was continued ex officio. The Commission determined that the proposed concentration cannot proceed unless Atlantic Grand d.o.o. Belgrade complies with the follow - ing conditions: • divest the factory used for coffee process - ing and product manufacturing, including the land, buildings, equipment, and machinery essential for these operations; • refrain from renewing or signing new con - tracts for the production of private-label coffee for other market players for a period of five years; and • submit to the Commission the general terms of sale and provide detailed reports over the next five years, including data on: (a) the quantity and price of imported raw coffee; (b) production capacity and its utilisation for both Atlantic Grand and Strauss Adriatic in Serbia; (c) the annual production volume of tradi - tional roasted coffee; (d) wholesale quantities and prices of such coffee sold domestically; and (e) export figures. When assessing that the concentration could be approved only with the imposition of specific conditions, the Commission defined several
product markets for the production and whole - sale of coffee. Different product markets were established for traditional (domestic) roasted coffee, espresso coffee, instant coffee, filter coffee, and coffee capsules. Assessment of the effects of the concentration on the market raised no concerns regarding the production and wholesale of espresso coffee, instant cof - fee, filter coffee, and coffee capsules. However, the reason for continuing the investigative pro - cedure and issuing conditional approval was a significant strengthening of the parties’ positions in the market for the production and wholesale of traditional (domestic) roasted coffee. CEE-BIG B.V. Netherlands – NEPI Real Estate Project One d.o.o. Novi Sad The Commission unconditionally approved the concentration in which CEE-BIG B.V., a com - pany based in the Netherlands, acquired sole control over NEPI Real Estate Project One d.o.o. Novi Sad through the purchase of ownership shares. During the assessment, the Commission defined the market for the management and leasing of modern retail space as the relevant product mar - ket, while the territory of the city of Novi Sad was determined as the relevant geographic market. In evaluating the effects of the concentration, the Commission particularly considered the fol - lowing factors: • the structure of the market for the manage - ment and leasing of modern retail space in Novi Sad; • the compensatory (bargaining) power of ten - ants; and • opinions and feedback from tenants collected through a survey.
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