The Croatian Competition Agency (CCA) has initiated a Phase II investigation into the proposed merger of Eagle Hills and Sunčani Hvar and Sunčani Hvar Nekretnine to evaluate its impact on competition in the hospitality sector market, specifically in accommodation and catering services in hotels and camping sites within the Split-Dalmatia County.

Following a complete notification of the merger on 11 June 2024, the CCA issued a request for information to all relevant parties to gather insights on potential anticompetitive effects that could arise from the merger. One of the involved undertakings responded to the request and provided its observations.

Based on the information received, along with additional data and findings, the CCA identified concerns regarding significant anticompetitive effects that the merger could have on the relevant market. As a result, the agency deemed it necessary to conduct a detailed economic and legal analysis to define the relevant market geographically and in terms of hotel accommodation market segmentation to assess its impact on competition.

Consequently, the CCA has decided to proceed with an in-depth compatibility assessment in Phase II, which involves a mandatory three-month period for further evaluation. During this phase, the agency will make a final determination on the merger's compliance with competition rules.