March 8 (SeeNews) - Croatian distributor of fast-moving consumer goods and food products maker Atlantic Grupa [ZSE:ATGR] will have to sell its existing coffee processing factory in Serbia before acquiring Serbian coffee roaster Strauss Adriatic, the Serbian market competition watchdog KZK said.
KZK said it has approved the acquisition, subject to certain conditions, in a statement issued last week.
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Another condition is that Atlantic’s Serbian unit Atlantic Grand will not be able to extend its existing deals, or sign new deals, to produce coffee under private labels for other market participants for five years.
A third condition involves Atlantic Grupa providing data to KZK over the next five years. This data includes information about the terms of sale, overall volume, and prices of imported raw coffee. Additionally, it covers production capacities and their utilisation rates at Atlantic Grand and Strauss Adriatic in Serbia, the annual volume of roasted coffee produced by these companies, the overall volume and wholesale price of sold roasted coffee in Serbia, and relevant export data.
According to Croatian business daily Poslovni Dnevnik, KZK refers to Atlantic’s existing factory to process coffee in Surcin, northern Serbia, which has to be sold in the next 18 months. Its sale was proposed by Atlantic Grupa, the daily added.
Atlantic’s shares traded 0.89% lower at 55.50 euro on Friday afternoon in Zagreb.
($ = 0.913 euro)