Category: Croatia

  • Growing Organically Across CEE: Peterka & Partners Opens for Business in Croatia

    Peterka & Partners has been steadily expanding its reach across Europe for more than 23 years, with the recent addition of Croatia to the firm’s network. Peterka & Partners Managing Partner Ondrej Peterka and the Croatian firm’s Main Contact Person, Attorney-at-Law Anja Haramija, share details about the firm’s vision and its recent expansion.

    CEELM: Starting from the beginning, how was Peterka & Partners established initially and how did it grow to eight offices in eight countries in 23 years?

    Peterka: Peterka & Partners was established in Prague back in 2000 with a team of ten lawyers. Over time, the firm has expanded its reach to other countries in Eastern Europe. In 2001, we opened an office in Slovakia, followed by Ukraine in 2005, and Bulgaria in 2008. In 2010, the firm extended its presence to Poland and Romania and, in 2013, we established an office in Hungary. The newest addition to the firm’s network is the Croatian office, which opened in March 2023.

    CEELM: Joining networks and establishing cross-border law firm partnerships seem to be much more frequent these days, in terms of expanding a law firm’s footprint. What’s your strategy and why is it different?

    Peterka: Our approach to expanding our operations involves opening new offices as greenfield operations, rather than acquiring law firms. Typically, we send expat personnel to initiate the process, and then we transition to local management. However, over time, we opted to work directly with local people (without any expats), as happened during our recent expansion into Hungary and Croatia.

    Although our model is more financially demanding, it allows us to invest in one firm’s operation, including IT, marketing, and personnel, which, in return, provides significant benefits to our clients, who value an integrated firm. They appreciate the control we have over all our offices, our single system of fees, and the dialogue we have regarding the client-law firm relationship. Consequently, we find that regional firms like ours are in a better position to meet their needs.

    CEELM: What about your latest expansion effort? Why did Croatia make sense, what was the initial plan, and how did that turn out, considering market specifics?

    Peterka: We have established a strong presence in Croatia due to several reasons. Firstly, we have received numerous client requests over the years to cover the former Yugoslavia, and Croatia is the largest jurisdiction of theirs that is part of the EU. It makes great sense to coordinate services in the former Yugoslavia from Zagreb, as this is a central location. Secondly, many international groups – our clients – are already operating in Croatia or expressing interest in working with us there. Finally, there is a significant relationship between the Czech Republic, Slovakia, Poland, and Croatia, with a lot of cross-border investments in Croatia.

    When we opened our office, we hired our first lawyers and started working to see how things would progress. Fortunately, things are going quite well, and we have proceeded similarly to how we had established our presence in other countries. We believe starting operations and working as you go is important, adapting to the circumstances as they arise.

    CEELM: Anja, what were the factors that motivated you personally to consider joining the Peterka & Partners team?

    Haramija: For the past six and a half years, I have worked in two prominent Croatian law firms, but their focus was mainly domestic, lacking the international orientation that I find most intriguing. As a result, I was drawn to the Peterka & Partners team, which operates in eight European countries and has a team of highly motivated and talented lawyers.

    After my initial interview, I was impressed with the group’s organized and goal-oriented approach, as well as their high-profile clients and challenging work. It was an opportunity that I couldn’t resist and, three months later, I am thrilled to have accepted the offer. 

    CEELM: Ondrej, how did you choose Anja, as you previously had no feet on the ground?

    Peterka: The most crucial and challenging task for any organization is to select the right people. That’s why I took a personal interest in the process when we were looking to add new team members. We reached out to firms, lawyers, and HR agencies in Croatia, using several channels to identify potential candidates. We conducted multiple interviews, and Anja stood out for her pragmatic approach, commitment, and ability to act quickly. 

    We were also pleased that, given that our firm has a high percentage of women – close to 70% – including in management, Anja would fit the team perfectly. This is not just a trendy statement but our long-standing commitment. After working with Anja for three months, we can confidently say that she was the right choice. She has integrated well into the team and is performing exceptionally.

    CEELM: When setting up a new office in Croatia, what were the main priorities on your to-do list?

    Haramija: Our initial thought was to hire competent personnel, including lawyers and administrative staff, who can deliver top-notch legal services. We utilized various networks and channels, including agencies, to search for suitable candidates, and conducted multiple rounds of interviews. We now have three lawyers and one administrative staff member on our team. 

    Secondly, we also had to find an office. Rather than opting for contemporary skyscrapers, we preferred the traditional architecture and charming essence of the old-fashioned buildings situated in the heart of Zagreb. Although it was challenging to find properties that met our requirements, we managed to locate suitable premises promptly. Today, our office is located in the most beautiful Zagreb Park – Zrinjevac – where we occupy 150 square meters of office space. 

    CEELM: What are your relatively short-term and long-term objectives in terms of operating in the Croatian market, and what is your focus now?

    Haramija: Our objective is to offer legal services of the utmost quality while also attracting new clients. We aim to expand our team to ten lawyers, with each person specializing in their respective fields, ranging from corporate and M&A to labor, public procurement, real estate, and more. Until we achieve this, we will be pursuing a holistic approach to our services, with internal specializations for the time being. Our ultimate goal is to provide legal assistance in all areas, thus establishing ourselves as a full-service law firm, as we have done in all other countries.

    CEELM: What’s the one thing that’s hardest for your firm when branching out into a new market? 

    Peterka: The crucial element is to find the right people. Our company caters to clients from both international and the local Czech, Slovak, and Polish markets who express an interest in collaborating with us. However, providing exceptional service relies heavily on having the appropriate personnel in place. Hence, we conducted thorough research to ensure that we can offer the same level of guidance in Croatia as we do in other countries.

    CEELM: Finally, what’s Peterka & Partners’ strategy for the next 23 years? 

    Peterka: Our goal is for our law firm to continue beyond our tenure. As such, we are exploring opportunities for expansion into other regions, including all former Yugoslav countries, Scandinavia, the Baltics, and what we refer to as the former Austria-Hungary. As a regional legal service provider with a one-stop model, we are serious about these prospects and are considering them carefully, taking into account our experience in Croatia. We have received positive feedback from clients and are confident that they will continue to follow us into new markets. 

    This article was originally published in Issue 10.5 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here

  • DTB Advises Possehl Digital on Partnership with Mono

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

    The Possehl Group is a German industrial and technology company.

    “Together, we want to take the digital transformation of medium-sized industrial companies in Germany and Europe to the next level,” Possehl Digital Managing Director Hermann Schaefer commented. “For us, Mono is one of the most exciting software development companies in the market, with great prospects and opportunities.”

    The DTB team included Senior Partner Damir Topic, Attorneys at Law Dina Salapic, Olena Manuilenko, Andrej Zmikic, Sanja Novoselic, Dominik Glavina, Ana-Maria Sunko Peric, and Iva Vukoja, and Trainees Anella Bukovic and Andrija Duvnjak.

  • Savoric & Partners and Bradvica Maric Wahl Cesarec Advise on Biochem Polska Acquisition of Kvantum-Tim

    Savoric & Partners has advised Biochem Polska on its acquisition of Croatian wholesale medical equipment distributor Kvantum-Tim. Bradvica Maric Wahl Cesarec advised an unidentified private individual on the sale.

    Biochem Polska Spolka Akcyjna is a Polish company specializing in the distribution of medical equipment.

    Kvantum-Tim is the largest Croatian wholesale company operating in medical equipment distribution.

    The Savoric & Partners team included Partner Nina Radic Kuzik and Senior Associate Nives Kolonic.

    The Bradvica Maric Wahl Cesarec team included Partner Mislav Bradvica, Attorneys at Law Marko Kapetanovic, Kristina Rudec, and Alen Svenda, and Associates Andrea Smolic, Ivan Jelic, and Stjepan Gvozdic.

  • Savoric & Partners and Kovacevic, Prpic, Simeunovic Advise on Hrvatski Telekom and Liburana Partnership

    Savoric & Partners has advised Hrvatski Telekom on its renewable-source virtual power purchase agreement ten-year partnership with Liburana. Kovacevic, Prpic, Simeunovic advised Liburana.

    According to Hrvatski Telekom, the ten-year partnership concerns a virtual power purchase agreement for renewable sources-generated electricity. Under the agreement, Liburana will supply Hrvatski Telekom with approximately 50 gigawatts of electricity generated at a wind power plant that will be built at the Mazin Gracac location.

    Liburana is a fully-owned subsidiary of renewable energy company Professio Energia.

    The Savoric & Partners team included Partner Mia Lazic and Senior Associate Andrea Ruba.

    The Kovacevic, Prpic, Simeunovic team included Partner Dinka Kovacevic and Attorney at Law Tin Anicic.

  • Wolf Theiss Advises Rhenus Group on Trans Integral Acquisition

    Wolf Theiss has advised Germany-based logistics specialist Rhenus Group on its acquisition of Croatian logistics provider Trans Integral.

    According to the Rhenus Group, “this deal further offers its company and customers the opportunity to benefit from additional resources and expertise, including a modern state-of-the-art truck fleet owned and operated by Trans Integral.”

    “The Rhenus Group and Trans Integral have a long history of cooperation prior to the current acquisition and have overlapping locations in Zagreb, Rijeka, and Ploce,” Wolf Theiss reported. “This deal allows both companies to perform complementary activities out of these locations and grants Rhenus the opportunity to foray into Bosnia and Herzegovina.”

    The Wolf Theiss team included Partner Dora Gazi Kovacevic and Associate Berislav Draskovic.

    Wolf Theiss was unable to disclose additional information on the deal.

  • Wolf Theiss Advises Rhenus Group on Trans Integral Acquisition (2)

    Wolf Theiss has advised Germany-based logistics specialist Rhenus Group on its acquisition of Croatian logistics provider Trans Integral.

    According to the Rhenus Group, “this deal further offers its company and customers the opportunity to benefit from additional resources and expertise, including a modern state-of-the-art truck fleet owned and operated by Trans Integral.”

    “The Rhenus Group and Trans Integral have a long history of cooperation prior to the current acquisition and have overlapping locations in Zagreb, Rijeka, and Ploce,” Wolf Theiss reported. “This deal allows both companies to perform complementary activities out of these locations and grants Rhenus the opportunity to foray into Bosnia and Herzegovina.”

    The Wolf Theiss team included Partner Dora Gazi Kovacevic and Associate Berislav Draskovic.

    Wolf Theiss was unable to disclose additional information on the deal.

  • Squire Patton Boggs Successful for Croatia in ICSID Arbitration

    Squire Patton Boggs has successfully represented the Republic of Croatia before an International Center for Settlement of Investment Disputes tribunal against a EUR 200 million claim brought by Marko Mihaljevic.

    “In the case, Mihaljevic alleged that Croatia breached its obligations under the Croatia-Germany Bilateral Investment Treaty due to its actions related to a property located next to the Mirogoj cemetery, a historical landmark in Zagreb, allegedly owned by the claimant,” Squire Patton Boggs informed.

    “Mihaljevic had filed his first request for arbitration with ICSID in October 2019,” the firm reported. “Shortly after, when he realized that he was a dual citizen of Croatia and Germany, Mihaljevic withdrew this request for arbitration and sought to terminate his Croatian citizenship. He then filed his second request for arbitration with ICSID in December 2019. At the time, under Croatian law, Mihaljevic was still a Croatian citizen – and remained so until May 2020.”

    According to Squire Patton Boggs, “Croatia claimed that Mihaljevic was precluded from bringing his claim because he failed to meet the jurisdictional requirements under Article 25 of the ICSID Convention, because of his Croatian citizenship. Specifically, Croatia claimed that Mihaljevic was a Croatian citizen on both the date of [his] consent and the date when his second request for arbitration was registered with ICSID.”

    Consequently, the firm reported that the tribunal agreed and unanimously declined jurisdiction, holding that Mihaljevic was a dual citizen of Croatia and Germany. In addition, the tribunal awarded Croatia all of its costs, including all legal fees.

    The Squire Patton Boggs team included Bratislava-based Senior Associate Jakub Kamenicky, as well as lawyers from the firm’s New York and Paris offices.

  • Karanovic & Partners Advises Mandated Lead Arrangers on Istrian Y Motorway Facilities Restructuring

    Ilej & Partners in cooperation with Karanovic & Partners has advised the mandated lead arrangers on the restructuring of facilities granted for the Istrian Y motorway concession project.

    According to Karanovic & Partners, the “Croatian government signed an amendment to the concession agreement with the concessionaire Bina-Istra to finalize the construction of the Istrian Y motorway. It is the key infrastructure for the development of tourism and economy in Istria, connecting Pula with Umag and Rijeka.”

    According to the firm, “this amendment provides for the extension of the concession period and the investment of approximately EUR 200 million (USD 220 million) into the construction of a second carriageway between the Ucka tunnel/Kvarner portal and the Matulji interchange, extension of Kvarner rest area as well as construction of the second viaduct across the Mirna River and the Limska Draga viaduct. Simultaneously, Bina-Istra signed a contract with the French engineering group Bouygues to manage, maintain, and supervise the remaining construction works on the Istrian Y motorway. The construction is expected to commence in July 2023 and last for 38 months.”

    The Ilej & Partners team included Partners Iva Tokic Culjak and Ivana Sverak.

    The firm did not respond to our inquiry on the matter.

  • Bright Prospects and Busy Lawyers in Croatia: A Buzz Interview with Mojmir Ostermann of Ostermann & Partners

    Despite the challenges, Croatia’s M&A market appears to hold promise in 2023 – particularly in the retail, IT, and renewables sectors – according to Ostermann & Partners Managing Partner Mojmir Ostermann.

    “As we approached the end of 2022, there was widespread concern about what 2023 would bring in terms of recession, inflation, and other negative economic indicators,” Ostermann points out. “However, thankfully, things have been looking up so far, and we can anticipate a promising M&A market in 2023, with very interesting opportunities for mandates.”

    “It appears that this year holds great potential for professionals involved in M&A transactions, particularly in the retail, food, and energy sectors,” Ostermann notes. “These industries are essential for sustenance, and people will continue to purchase food or energy regardless of fluctuating prices or weather conditions. Consequently, financial investors are keen to invest in these sectors. The main driver behind it is that these sectors are relatively resilient to challenges like a possible recession.”

    Ostermann highlights two significant M&A transactions that will probably happen in 2023 in Croatia. “Currently, the sale of Pevex, the largest DIY store in the Croatian market, has been announced by the main shareholder,” he says. “Additionally, two weeks ago, Fortenova published that it started the process for examining interest by potential investors for the purchase of the Fortenova group, while Lazard has been engaged as an advisor.”

    Finally, Ostermann draws attention to significant developments in Croatia’s renewables market. “We anticipate a significant influx of investments for photovoltaic power plants as Croatia’s solar energy currently only accounts for less than 1% of the total energy produced, despite the favorable climate conditions,” he points out. “The Ministry of Economy has recently begun issuing energy approvals for projects that have been in the works for over a year, though certain regulations are still lacking.”

    According to him, “due to a large number of applications, both the ministry and the transmission system operator require more time to determine not only how energy production will be implemented, but also how it will be integrated into the grid. This may be why the government is taking extra time to ensure that energy approvals are properly issued. It is likely that construction will begin on several projects by the end of the year, resulting in a significant increase in financing mandates.” Overall, Ostermann believes that “the prospects for this year are bright, and lawyers can expect to remain busy.”

  • Ilej & Partners Advises ALS on Acquisition of Hidro.Lab

    Ilej & Partners in cooperation with Karanovic & Partners has advised ALS on its acquisition of Hidro.Lab.

    ALS provides laboratory testing, inspection, certification, and verification solutions.

    Hirdo.Lab is a Croatian provider of environmental testing, offering sampling and physical-chemical laboratory testing focused on wastewater, surface water, and solid waste.

    The Ilej & Partners team included Partner Iva Tokic Culjak and Associate Antun Skansi.

    The firm did not respond to our inquiry on the matter.