Commission: Delta share in Belgrade market 63 pct

Delta Maxi has a dominant position on the Belgrade market with a 40% share, says the Competition Commission. Commission President Dijana Markovic-Bajalovic said that, when determining a retail chain’s market share, it was international and European practice to take into account only those premises where “unspecialized retail trade” took place, mainly food, tobacco and beverages. Commission: Delta share in Belgrade market 63 pct “The problem with Delta is obviously the way the relevant market is organized, and the company would like to include specialized outlets, such as bakers, and small premises, under 50 square meters in size,” Markovic-Bajalovic explained. The Commission’s ruling, passed for a second time, prohibiting the merger of C Market and Delta, states that Delta Maxi, together with C Market and Pekabeta, had a 63.4 percent share of the Belgrade market in 2006, with overall profits of EUR 362.3mn. According to Commission data, in 2006, Delta Maxi, C Market and Pekabeta had 284 retail premises, occupying 87,090 meters squared, constituting 69.4 percent of the Belgrade retail market. The Commission explains its decision to block the merger on its website. It determined the market share on the basis of data from the Statistical Office of the Republic of Serbia, and from other information supplied by competitors and market research. On Monday, Delta announced that, according to Statistical Office figures on retail sales of food, beverages and cigarettes in Belgrade in 2006, it had a 34.7 percent share of the market, together with C Market and Pekabeta. In 2005, Delta Maxi, before C Market’s figures were included, had a market share of 19.7 percent. However, overall figures are taken into account, and not just the relevant market.

Commission: Delta share in Belgrade market 63 pct

“The problem with Delta is obviously the way the relevant market is organized, and the company would like to include specialized outlets, such as bakers, and small premises, under 50 square meters in size,” Marković-Bajalović explained.

The Commission’s ruling, passed for a second time, prohibiting the merger of C Market and Delta, states that Delta Maxi, together with C Market and Pekabeta, had a 63.4 percent share of the Belgrade market in 2006, with overall profits of EUR 362.3mn.

According to Commission data, in 2006, Delta Maxi, C Market and Pekabeta had 284 retail premises, occupying 87,090 meters squared, constituting 69.4 percent of the Belgrade retail market.

The Commission explains its decision to block the merger on its website. It determined the market share on the basis of data from the Statistical Office of the Republic of Serbia, and from other information supplied by competitors and market research.

On Monday, Delta announced that, according to Statistical Office figures on retail sales of food, beverages and cigarettes in Belgrade in 2006, it had a 34.7 percent share of the market, together with C Market and Pekabeta.

In 2005, Delta Maxi, before C Market’s figures were included, had a market share of 19.7 percent. However, overall figures are taken into account, and not just the relevant market.