As a consequence to various open points that have been raised in practice concerning the competition legislation in Serbia; the Parliament of Serbia adopted the new law on protection of competition that shall be applied as of November 1 2009 to all acts made on the territory of Serbia (i.e. outside of Serbia with impact on the Serbian market).
In 2008, Serbia was undergoing significant privatisation and greenfield investment. In 2009, following the effects of the global financial downturn, privatisation work dropped off considerably....
[more]
In 2008, Serbia was undergoing significant privatisation and greenfield investment. In 2009, following the effects of the global financial downturn, privatisation work dropped off considerably.
The effects of the crisis didn't hit the country until Q1 of 2009, after which firms reported an average drop in deal volume and number of around 20%. M&A and private equity work suffered the most. However, in the absence of pure M&A and private equity mandates, firms have been kept busy with corporate restructurings and the sale of distressed assets.
The combined effects of the financial crisis and a perceived lack of government reform of the financial system have meant that foreign investors have turned their attention back to their home markets. The drop in foreign direct investment (FDI) has been fairly dramatic. As one partner put it: "At the end of 2006, we recorded $5.5 billion in FDI. This year, if we record $1 billion we'll consider it a triumph."
Another crisis-survival strategy being employed by firms who have already built up their leads has been to strengthen their focus on other territories in the region, including Montenegro, Macedonia and Bosnia.
The partners at one firm pointed out that firms who are ready to act on corporate and financial restructurings, distressed sales and energy and infrastructure deals will do well over the next 12 months.
[Read about law firms' performance in this practice area]
[hide]