September 21 (SeeNews) - Croatia's anti-trust regulator, AZTN, said on Wednesday it has cleared hotel operator Valamar Riviera [ZSE:RIVP-R-A] to take over local peer Imperial.
The acquisition will only have effect in the area of Primorje-Gorski Kotar County where Valamar operates, AZTN said in a statement.
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By implementing the concentration Valamar will strengthen its leading market position in the Primorje-Gorski Kotar County in terms of beachside campsites where it will now hold a market share between 25 and 30 percent. On the apartments market, Valamar will grasp the leading position with a share of up to five percent, while on the hotel market the company will remain second with a share of five to 10 percent.
AZTN noted that Valamar will face tough pressure from peers Jadranka, Liburnia Riviera Hotels and others, but will also, by strengthening its market position, contribute to a further growth in competition.
Valamar said on Tuesday it has signed a share purchase and transfer agreement for a 50.08% stake in Imperial for 260.8 million kuna ($41.8 million/37.4 million euro). The company is now expected to make a mandatory offer for the Imperial shares it does not already own.
Primorje-Gorski Kotar County is a county in western Croatia that includes the Bay of Kvarner, the surrounding Northern Croatian Littoral, and the mountainous region of Gorski kotar.