Konkurencijsko vijeće Bosne i Hercegovine

CONCLUSIONS OF THE 50TH SESSION OF THE COUNCIL OF COMPETITION

Sarajevo, 21 September 2007 - On its 50th session the Council of Competition has adopted a Decision declaring the concentration compatible; the concentration is created through achievement of majority control over undertaking Brokersko-dilersko društvo (Authorized Broker) Senzal a.d. Belgrade, Republic of Serbia by undertaking KBC Securities NV, Belgium. Effects of the concentration concerned in the market of Bosnia and Herzegovina are driven through Brokersko-dilersko društvo Senzal a.d. (Authorized Broker) Banja Luka, a subsidiary association of the parties to the concentration. When the assessment and analysis of the data and establishment of the facts was finished in the decision making procedure, the Council of Competition ascertained that concentration in question will not distort the market competition on the market of securities brokerage services because this concentration will not change market shares of the parties to the concentration as only the undertaking Senzal a.d. Belgrade is present in the market of Bosnia and Herzegovina through its subsidiary association Senzal a.d Banja Luka.

The Council of Competition adopted a Decision upon the Notification of intended concentration between undertakings B.S.A. International, Brussels, Kingdom of Belgium and Dukat mliječna industrija (Dukat Dairy Industry) d.d. Zagreb, Republic of Croatia. Underatking B.S.A. International submitted to the Council of Competition a Notification of intended concentration by means of which it intends to achieve majority control over the undertaking Dukat mliječna industrija (Dukat Dairy Industry) d.d. Zagreb. The effects of the concentration concerned in the market of Bosnia and Herzegovina are achieved through the subsidiary associations of Dukat mliječna industrija (Dukat Dairy Industry) d.d. Zagreb: Dukat mljekara d.o.o. Sarajevo and Inmer d.o.o. Gradačac. The Council of Competition assessed after the completed analysis that the implementation of the concentration concerned will not distort market competition in the production and distribution market of milk and diary products in the territory of Bosnia and Herzegovina because the undertaking B.S.A. International has not been present in the market of Bosnia and Herzegovina. Therefore, the market shares of the undertaking Dukat mliječna industrija (Dukat Dairy Industry) d.d. Zagreb in the market of Bosnia and Herzegovina shall remain unchanged

A concentration implemented between undertakings Voestalpine AG, Austria and Boehler-Uddelholm AG Wienna, Austria in the market for sale and distribution of steel products in Bosnia and Herzegovina is assessed compatible by the Council of Competition. Voestalpine AG submitted to the Council of Competition a Notification on intended concentration by means of which it intends through purchase of majority stocks of undertaking Boehler-Uddelholm AG to become a majority owner. The effects of the concentration concerned in the market of Bosnia and Herzegovina are driven through subsidiary association Voestalpine AG, Veting voestalpine Stahlhandel d.o.o. Sarajevo. The Council of Competition analyzed and assessed all established data and facts in the decision making procedure and ascertained that the concentration concerned will not distort the competition in the market of steel and steel products in Bosnia and Herzegovina nevertheless the market shares of the Voestalpine AG will be slightly changed.

At the same session, the Council of Competition adopted a Decision declaring the concentration compatible; the concentration will be implemented between Veleprodajni centar trgovina na veliko i malo (The Wholesale and Retail trade Center) d.o.o. Sarajevo (Velpro) and Džananović d.o.o. Zenica on the basis of the Agreement on business cooperation concluded between the undertakings in question. According the Agreement on business cooperation, Velpro leased, in the long term, the premises of the company Džananović d.o.o. and its staff and goods in those premises. So Velpro makes takeover of the business of the company Džananović d.o.o. and its market shares because Džananović d.o.o. has terminated its activity in the market of wholesale and retail trade in groceries, nutrition, drinks and household consumer goods in Bosnia and Herzegovina. When the detailed legal and economic analysis was completed, the Council of Competition established the intended concentration shall not prevent, restrict or distort market competition in the relevant market because this concentration shall not significantly increase the market shares of the parties to the concentration.

Due to the fact that the Notification of intended concentration was not submitted within the legally determined time period, the Council of Competition has imposed a fine on undertaking Veleprodajni centar trgovina na veliko i malo (The Wholesale and Retail trade Center) d.o.o. Sarajevo in amount of 80.000,00 KM.

The Council of Competition has adopted a Resolution on dismissal of Notification of intended concentration between undertakings Veleprodajni centar trgovina na veliko i malo (The Wholesale and Retail trade Center) d.o.o. Sarajevo (Velpro) and VF Komerc d.o.o društvo za trgovinu na veliko i malo i posredništvo (The Association for Wholesale and Retail trade and brokerage) Sarajevo due to the fact that the submission of notification on intended concentration was not obligatory pursuant to the stipulations of the Act on Concentration. The undertaking Velpro submitted to the Council of Competition a Notification of intended concentration and individual Lease Agreements concluded with undertaking VF Komerc. The Council of Competition ascertained that above mentioned individual agreements were preceded by a Frame Agreement on takeover of business activities and long term lease concluded between Agrokor d.d. Zagreb and VF Komerc d.o.o., which regulates all conditions and models for takeover of business and warehouse premises of VF Komerc. Therefore, considering the fact that Agrokor d.d. Zagreb is majority owner of undertaking Velpro, the Council of Competition established that a notification of intended concentration should be submitted by the undertaking Agrokor d.d. Zagreb.

Taking into account all above mentioned factual conditions, the Council of Competition adopted a Resolution on initiation of the proceeding ex-officio in order to assess the concentration implemented between undertakings Agrokor d.d. Zagreb and VF Komerc d.o.o društvo za trgovinu na veliko i malo i posredništvo (The Association for Wholesale and Retail trade and brokerage) Sarajevo. In the course of the proceedings the Council of Competition will search and analyze all relevant facts relating to the assessment of the notification concerned, pursuant to the Act on Competition.

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