REGULATORY NEWS: AZTN Initiates Assessment of Agrokor-Mercator Merger Concentration
On 21 November, the AZTN announced that it has started the second stage of the assessment of the Agrokor and Mercator concentration. Agrokor submitted the request for concentration assessment on 28 October.
The agency established that the concentration will affect market competition due to overlapping activities of the two merging companies on the Croatian retail market; above all in the Zagreb area. In assessing the concentration effects on the retail market, the AZTN will also consider the effects the concentration will have on the suppliers, due to the Agrokor Group being vertically integrated through subsidiary producers, such as Zvijezda and Belje.
One can argue that Agrokor would perhaps need to divest from its Konzum or Mercator retail stores (or a combination of both stores), since the overall market share of Konzum and Mercator cannot exceed the 40% threshold…