Mercator's chain ensures the availability of Slovenia's produce and foodstuffs to Slovenian consumers, so its possible hostile takeover could have negative consequences on agriculture, banks, overall economic activity, the labour market, and the budgetary deficit, the ministry said in a press release carried by the STA news agency.

The ministry said it was closely examining the possible consequences of a Mercator takeover and that it would respond appropriately, informing the public on time and fairly.

The statement said the Slovenian government would officially object to the possible granting of a European Bank for Reconstruction and Development loan for Agrokor's purchase of Mercator if this item was put on the bank's agenda.

The director of the Slovenian SKB bank, Cvetka Selsek, who represents Mercator's management in the chain's talks with the potential buyer, told STA she knew nothing about the alleged signing of a sales contract next week and that management had not been notified about it by the consortium comprising banks and the Pivovarna Lasko brewery, which are negotiating the sale of their Mercator stock.

According to Slovenian media, Agriculture Minister Dejan Zidan is also against the sale, as he is not convinced that Agrokor has enough money to buy Slovenia's largest retail chain. He has cited an assessment by the state agency for the management of state property, which has recently objected to Mercator's sale to the Croatian competitor and is thinking about returning part of the chain's stock to the state portfolio.

The media also reported that President Danilo Tuerk said yesterday that a decision on Mercator's sale must be weighed carefully and that it entailed political responsibility.

Slovenian unions plan to protest against Mercator's sale outside the government on Tuesday, the media said.