The Office for the Protection of Competition in the Czech Republic has approved the merger of PPF Real Estate, a competitor, with Diplomat Prague RE and the company Hotels by HR Diplomat.
PPF Real Estate belongs to the PPF business group, which is active worldwide in a range of business sectors. As part of its business activities in the field of leisure activities, the group also provides hotel accommodation services.
The competitor Diplomat Prague RE is active primarily in the hotel industry, owning and operating the Diplomat Prague hotel. It also provides other related services, which include the rental of multifunctional conference and social spaces of the Diplomat Prague hotel.
Both merging competitors therefore operate in the field of the hotel sector, as the acquired company Diplomat PRE operates a 4* hotel Diplomat Prague, while the PPF group operates the 5* hotels Hilton Prague and Four Seasons Hotel Prague and the 4* hotel Stages Hotel Prague, all of which are located in Prague.
The Office examined the impacts of the merger on the areas of hotel operation and the provision of rental space for congress and social events, but did not find any potential distortion of competition in any of them. The decision has already taken effect.
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