The Croatian Competition Agency (AZTN) has granted approval for Tommy, Croatia’s sixth-largest grocery retail chain, to acquire local peer Brodokomerc Nova.
This acquisition will bolster Tommy’s position in the retail market of Primorje-Gorski Kotar County.
Despite potential concerns about anti-competitive effects, the competition authority concluded that the deal is unlikely to significantly harm competition within the Croatian grocery retail market.
Although Tommy’s market share will increase post-acquisition, it will remain relatively low, both nationally (5-10%) and in Primorje-Gorski Kotar County (also 5-10%). Therefore, it approved the merger without imposing any conditions or restrictions.
Reports of Tommy’s interest in Brodokomerc Nova emerged in May, although both sides declined to comment at the time.
Croatian retail chain Tommy, a leader in the Dalmatian region, has expressed interest in purchasing rival Brodokomerc Nova, according to reports.
Tommy’s offer of €17,500 per share outbid other interested parties, including another major Croatian retail chain. This acquisition represents Tommy’s expansion into the Rijeka region, wherein several stores already operate.
Brodokomerc Nova
Brodokomerc Nova’s network comprises 42 stores, all located within the city of Rijeka and its surrounding areas. These points of sale include supermarkets, delicatessens, and specialty shops.
However, Brodokomerc Nova is currently facing financial challenges. Stores are understocked, revenue declined from €19.6 million in 2022 to €18.6 million in 2023, and a loss of nearly €1.2 million was recorded in 2023.
Tommy will likely need to invest significantly to modernise the 42 stores that it has acquired and revitalise the business.
Brodokomerc Nova’s long-term property assets are valued at €5 million, with some property already sold to cover debts. Despite this, long-term liabilities have also increased.
