UPDATE 1-Croatian watchdog clears MOL-INA deal

Tue Jun 9, 2009 12:49pm BST

http://uk.reuters.com/article/oilRpt...

* MOL gets approval to gain control of Croat INA

* INA ordered to sell its small retailer in 9 months

(Adds details, quotes)

ZAGREB, June 9 (Reuters) - Croatia's anti-trust agency gave conditional approval on Tuesday for a deal allowing Hungarian oil company MOL MOLB.BU to gain control of Croatian peer INA INA.ZA (HINAq.L).

The agency said the new company's share of Croatia's oil retail market would be too big, at almost 60 percent, and ordered it to sell Crobenz, a small retailer owned by INA, in the next nine months.

"The reason for this decision is a big joint market share as MOL will now have a market share of between 55 and 60 percent, and this could have negative effects on retail and wholesale oil business in Croatia," Olgica Spevec, the head of the agency, told reporters.

The deal, struck between MOL and the Croatian company in January, has already been approved by the European Commission and can now be confirmed at INA's sharholder meeting on May 10.

MOL is INA's biggest shareholder with a 47 percent stake. The government owns some 44 percent.

Spevec said if MOL/INA did not manage to sell Crobenz in the next nine months, a specially appointed trustee would take over to complete the sale in the following three months.

"Crobenz owns 14 petrol stations in Croatia and its market share is similar to that of Russia's Lukoil (LKOH.MM)," Spevec said.

Lukoil said last year, when it entered the Croatian market by acquiring a small oil retailer and an oil storage facility, that it aims to expand its business in the European Union candidate country. (Reporting by Igor Ilic; Editing by David Holmes)