The Competition Authority recently adopted a decision conditionally clearing an acquisition in the Serbian sugar market. Sunoko doo Novi Sad acquired control of Star Šecer doo Senta and consequently TE-TO Senta AD. The resulting market share aggregation in the affected markets ranges from 60% to 80%.
The authority noted that the concentration would strengthen Sunoko's dominant position in the Serbian sugar production and sales markets. The authority believes that the introduction of operational requirements and restrictions on Sunoko will prevent any negative effects resulting from market concentration.
The decision recommends behavioural remedies and mandatory regular reporting to the authority. The measures include:
- ensuring the subsistence of all current production capacities;
- the monitoring of the level of and changes to sugar prices on the market;
- improving the transparency of sugar sales policies and business relations with purchasers; and
- informing the authority of the level and type of investments in TE-TO will make in order to increase production efficiency.
The imposed measures (with some exceptions) will apply for no longer than five years from the date of the authority's decision.
During the investigation, the authority collected information and opinions on the effects of the concentration of the competitors, their largest suppliers and purchasers and the state authorities responsible for the information relevant to the proceedings.
For further information on this topic please contact Srdjana Petronijevic at Moravcevic Vojnovic i Partneri in cooperation with Schoenherr by telephone (+381 11 320 26 00) or email ([email protected]). The Moravcevic Vojnovic i Partneri website can be accessed at www.schoenherr.rs.
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