Konkurencijsko vijeće Bosne i Hercegovine

CONCLUSIONS OF THE 56th SESSION OF THE COUNCIL OF COMPETITION

SARAJEVO, 14 December 2007 - The Council of Competition has assessed a concentration which will be created in the market for sale of PVC shutters and frames in Bosnia and Herzegovina compatible. The concentration shall acquire majority control of undertaking PVC (Lux) Company Holding S.á.r.l. from Luxemburg over the undertaking HT Luxemburg S.á.r.l., Luxemburg. Namely , PVC (Lux) Company Holding submitted to the Council of Competition a notification of intended concentration by means of which it intends to acquire a majority control over the undertaking HT Luxemburg. The effects of the concentration concerned on the market in Bosnia and Herzegovina are achieved through the subsidiary association Profine BH d.o.o. from Živinice, a party to the concentration. After the completed analysis , the Council of Competition ascertained that, as only the undertaking HT Luxemburg operates in the market of Bosnia and Herzegovina, the concentration will not change a market shares of the parties to the concentration and that the concentration concerned does not distort market competition in the market for sale of PVC shutters and frames in Bosnia and Herzegovina.

Also, the Council of Competition assessed a concentration, created between undertakings VF Komerc d.o.o. društvo za trgovinu na veliko i malo i posredništvo (The Wholesale and Retail trade Centre) from Sarajevo and Agrokor d.d. from Zagreb in the market for wholesale and retail trade of groceries , food , drinks and wide range of household products in Bosnia and Herzegovina, as compatible. A Notification on intended concentration of undertaking Veleprodajni centar trgovina na veliko i malo d.o.o. (The Wholesale and Retail trade Centre) Sarajevo (Velpro) supplemented by individual Lease Agreements made with VF Komerc, was submitted to the Council of Competition. The Council of Competition ascertained that the above mentioned individual agreements were preceded by the Draft agreement to business takeover and long term lease concluded between Agrokor d.d. Zagreb and VF Komerc d.o.o., which specifies the conditions and models of lease the business and warehouse premises of VF Komerc.Considering the fact that Agrokor is majority owner of Velpro, the Council of Competition established that Agrokor was obliged to notify the intended concentration. Due to that reason, the Council of Competition started an ex-officio proceedings for assessment of the concentration created between Agrokor and VF Komerc. The Council of Competition assessed that this concentration will not have negative effects on the market for wholesale and retail trade of groceries, food, drinks and wide range of household products in Bosnia and Herzegovina.

Due to the fact that a Notification of intended concentration was not submitted pursuant to the Act on competition, the Council of Competition imposed a fine of 190.000 KM to Agrokor d.d. Zagreb.

Also, the Council of Competition assessed a concentration, which will be created in the market for sale of mining industry equipment in Bosnia and Herzegovina between Atlas Copco International B.V. from Holland and Sarajevo company AC Oprema d.o.o. as compatible. The company Atlas Copco International B.V. submitted to the Council of Competition a Notification of intended concentration by means of which it intends to become 100% owner of AC Oprema d.o.o. In the decision making procedure which included assessment of all information and facts, the Council of Competition established that, owing to insignificant changes in market shares of Atlas Copco International B.V. , the intended concentration will nor distort competition regulations in the market for sale of mining industry equipment in Bosnia and Herzegovina.

Upon request of 10 private pharmacies from Unsko-Sanski Canton, the Council of Competition has adopted a Resolution on initiation of the proceedings for establishing the presence of distortion of market competition by the Health Insurance Institute of Unsko-Sanski Canton (Institute) and Government of Unsko-Sanski Canton. Private pharmacies submitted their request to the Institute in order to allow private pharmacies prescription drugs practices and services for insured persons from Unsko-Sanski Canton falling within the burden of funds of the Institute. The Council of Competition is going to establish whether the Institute prevents, restricts or distorts a market competition.

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