Did you know that the CEE Q1 leaderboards are available through the Activity Rankings function of the CEELMDirect website?

Croatia ranks third among European Union countries in terms of home ownership, with a significant 91% of Croatians residing in real properties they either own or are owned by a household member. Typically, Croatians primarily use these owned residential properties for personal residential purposes. However, residential real property ownership is also regarded as a lucrative investment avenue. Individuals and companies often invest in real properties, either residential or commercial, on a buy-to-let model. In recent years, a hybrid model of aparthotels arose on the Adriatic coast, in the spatial zones designated for tourism industry. The model allows private investors to own a condominium unit in the tourism zone, utilising it for a specific period annually while deriving profit from its commercial use for the remaining period.

In public procurement, the term bid rigging (also called collusive tendering) describes unlawful agreements between bidders with the intention of distorting the competition in award procedures and allowing a preferred tenderer to win the public contract while giving the impression that the process is truly competitive. The hidden agenda is often to force a high contract price that is not appropriate given the state of the market.

In 2023, Croatia’s M&A market faced unexpected challenges on several fronts. Lovric, Novokmet & Partners Partner Mate Lovric and Divjak, Topic, Bahtijarevic & Krka Senior Partner Damir Topic discuss the market’s slowdown in the year behind us.

Did you know that the early 2024 deal leaderboards are already available via the Activity Rankings function of the CEELMDirect website?

Divjak Topic Bahtijarevic & Krka has advised borrower Zadar Resort and sponsor Dogus Croatia on a EUR 31.2 million loan with Privredna Banka Zagreb and the Croatian Bank for Reconstruction and Development as the mandated lead arrangers. Mamic Peric Reberski Rimac advised Privredna Banka Zagreb and the CBRD.

One of the most important questions within every M&A deal is whether the transaction at hand is subject to merger clearance. The answer to said question might impact the timeline and (potentially) the successful completion of the deal itself. Up until Towercast cases (C-449/21), the analysis was straightforward by applying the clear turnover-based rules defining the applicability of the Regulation No 139/2004 (“Merger Regulation”).

Divjak Topic Bahtijarevic & Krka has advised Plava Laguna on the sale of Bonavia – a four-star hotel in Rijeka – to Bonavia Rijeka. Savoric & Partners advised the buyers.

Divjak Topic Bahtijarevic & Krka has advised Hungary-based fruit and tree nut farming company Apple Heaven on the purchase of shares in Rabo.

During the Three Seas Initiative annual general meeting in Bucharest in September 2023, Austria's Dorda, Bulgaria's Boyanov & Co., Croatia's Divjak Topic Bahtijarevic & Krka, the Czech Republic's Kocian Solc Balastik, Estonia's Ellex Raidla, Hungary's Lakatos Koves & Partners, Latvia's Ellex Klavins, Lithuania's Ellex Valiunas, Poland's Wardynski and Partners, Romania's Nestor Nestor Diculescu Kingston Petersen, Slovakia's Barger Prekop, and Slovenia's Selih & Partnerji announced they formed the Three Seas Legal Alliance, in recognition of the progress made by the Three Seas Initiative.

Croatia’s energy and real estate sectors are well-positioned for growth, while frequently changing legislation and an ongoing strike by judicial clerks complicate the lives of lawyers, according to Divjak, Topic, Bahtijarevic & Krka Senior Partner Mario Krka.

Divjak, Topic, Bahtijarevic & Krka has advised Germany's Possehl Digital on its acquisition of a minority stake in Croatian Osijek-based IT company Mono.

Did You Know that CEELMDirect tracks – for every law firm and law firm partner – the client matters reported by CEE Legal Matters, and that the Activity Rankings function of the CEELMDirect website allows visitors to create updated leaderboards broken down by time, market, and practice area?

On April 28, 2023, CMS announced that PPD and INA’s sale of TMF – the largest shareholder of Croatian fertilizer company Petrokemija – to the Yildirim Group (reported by CEE Legal Matters on November 22, 2022), had closed.

On the evening of April 25, 2023, the Deal of the Year Awards Banquet brought together, under the same roof, top-tier lawyers from Central and Eastern Europe's leading law firms and ILFs active in the region in Istanbul.

New amendments entered into force in relation to the Croatian land registry legislation.

Did You Know that, according to the Activity Rankings function of the CEELMDirect website, only eight Croatian lawyers have worked on more than one reported TMT/IP deal in the country since January 1, 2020?

Contributed by Divjak, Topic, Bahtijarevic & Krka.