The Public Agency of the Republic of Slovenia for the Protection of Competition initiated an in-depth (Phase II) assessment of the proposed acquisition of control by Atlantic Droga Kolinska, d.o.o. over OSEM d.o.o., citing “serious suspicion” that the concentration may not comply with competition rules.
According to the Agency, the transaction gives rise to horizontal overlaps in two relevant markets: the sale of meat spreads and the sale of fish spreads to the retail sector. While concerns were not identified to the same extent in fish spreads, the authority found that the merger “raises serious doubts” in the market for meat spreads. ADK already holds a strong position in this segment, and the acquisition of OSEM would further strengthen that position in a market described as highly concentrated even prior to the transaction.
The Agency warned that the merger is “likely to significantly impede effective competition” in the meat spreads market, pointing to a reduction in competitive pressure and an increased possibility of unilateral conduct by the merged entity. It also highlighted the risk of coordinated effects, noting that a reduction in the number of significant competitors may enhance market transparency and facilitate parallel conduct, even absent an explicit agreement within the meaning of Article 5 of the ZPOmK-2.
The in-depth review will assess the market power of the parties and examine whether the merged entity could have the incentive to raise prices or worsen conditions for both branded and private-label meat spreads supplied to retailers in Slovenia. The Agency will ultimately determine whether the transaction could lead to a significant lessening of effective competition, in particular through the creation or strengthening of a dominant position.
The authority has invited third parties to submit relevant information and outlined procedures for the protection of trade secrets and confidential sources under the ZPOmK-2.