The CPC has prohibited the acquisition of CEZ’s undertakings in Bulgaria by “Eurohold Bulgaria” AD

By Decision No. 1169/24.10.2019 the Commission on Protection of Competition (CPC, Commission) has prohibited the acquisition of indirect sole control by “Eurohold Bulgaria” AD’s over „CEZ’s undertakings in Bulgaria”.

Based on the provided information and evidence during the investigation with regard to case No. CPC/822/2019 the Commission’s analysis found that the notified operation leads to conglomerate effects in the insurance market and the electricity sector. The proposed transaction will lead to significant increase in the market power of the undertakings concerned and they will have the possibility to act in a great extent independently from their competitors.

On the ground of the entire analysis the Commission concluded that merging the experience, the economic resources and the market positions of the parties in the electricity- and insurance sectors raises concerns that the notified concentration leads to the creation or strengthening of a dominant position of the united group and significantly impedes the effective competition in the relevant markets.

The full text of decision No. 1169/24.10.2019 is available in the public electronic register of the CPC at http://reg.cpc.bg/.