EC approves changes to restructuring plan of Croatia’s shipyard 3.Maj

By bne IntelliNews June 20, 2013

The European Commission said it has approved the amendment to the restructuring plan of Croatian shipyard 3.Maj. The EC said in a statement on its website that any distortion of competition that may arise from the modest increase in the total amount of restructuring aid would be compensated by the additional compensatory measures, propose by the country.

Thus, with this approval the EC clears the way for the wrap-up of the privatisation of the yard by July 1, 2013, when the country will become an EU member state.

Croatia's EU accession act stated that shipyards in financial difficulty have to be privatised before July 1, 2013.

In 2011, the EC and the Croatian competition authority approved a restructuring plan for 3.Maj, which envisaged HRK 5.3bn (EUR 714mn) of restructuring aid. In June 2013, the country insisted on a modest increase in the restructuring costs and a proportional raise in the restructuring aid. The country proposed to withdraw the possibility for 3.Maj to trade production quotas with other shipyards.

The EC said that this measure will ensure a strict limitation of production and a permanent removal of part of the production facilities. Thus, it concluded that the additional compensatory measures address a potential distortion of competition, which would be triggered by the aid.

In addition, the contribution of 3.Maj's buyer, namely Croatian shipyard Uljanik, to the restructuring is real, free of state aid and after the increase still represents 40% of the total restructuring costs.

Uljanik has offered to pay HRK 1 for the 83.3% stake in 3. Maj and to provide HRK 75mn in guarantees for its restructuring plan. Uljanik’s takeover bid does not include the non-core business of 3.Maj.

Thus, the Croatian government approved a contract on May 3 to take over the ownership of four non-core businesses that belong to 3.Maj. These four companies are engines and cranes producer 3.Maj Motori i Dizalice, marine equipment maker 3.Maj TIBO, catering firm 3.Maj Ugostiteljstvo and business services company 3.Maj STM.

Related Articles

Croatian central bank approves sale of Splitska Banka to Hungarian OTP’s Croatia unit

The Croatian central bank (HNB) council has approved the sale of a 100% stake in Croatia's Splitska Banka to Hungarian lender OTP Banka’s Zadar-based Croatian unit OTP banka d.d., ... more

Croatian government appoints new emergency officer at Agrokor

The Croatian government decided at a session on April 10 to appoint Ante Ramljak, an investment-banking expert, as struggling Agrokor’s emergency officer for the next 15 months of restructuring, ... more

Croatian constitutional court rules in favour of Swiss franc loan conversion programme

The Croatian constitutional court rejected on April 7 a request from local bank to assess the constitutionality of the Swiss franc loan conversion programme, and confirmed that the ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss