Slovenian Competition Protection Agency has imposed a fine of EUR 53,900,000 on legal entity Agrokor d.d. and a fine of EUR 5,000 on legal person responsible for the failure to notify the merger of Agrokor AG and Ardeya Global Ltd. to the Agency.
By concluding a Forward Share Purchase Agreement dated May 14, 2016, between Agrokor AG (which is 100 % owned by Agrokor d.d.) and Alsafi Partners td., the legal entity Agrokor d.d. became obliged to notify the merger to the Agency as Ardeya Global owns 100 % interest in Costella d.o.o. Since Agrokor d.d. despite the Agency’s request, did not notify the merger, on 9 April 2019 the Agency introduced ex officio concentration control proceedings.
For a minor offense of late or no notification of a merger, a fine of up to 10 % of the annual turnover of the undertaking involved in a concentration together with other undertakings in the group in the preceding business year shall be imposed on a legal person. In determining the fine, the Agency took into account the time of delay, perpetrator’s negligence or intent, the fact that the concentration was not notified despite the summons, the conduct of the legal person and other circumstances in accordance with the law. In assessing the fine, the Agency also took into account the need for general prevention of such violations, since (timely) notifications are crucial for the effective assessment and treatment of concentrations.
The Agency’s decision is not yet final as the offenders’ have announced an appeal in front of Ljubljana District Court.