The CPC opens in-depth investigation into “Eurohold Bulgaria” AD’s proposed acquisition of CEZ’s undertakings in Bulgaria

By Decision No. 1095/10.10.2019 the Commission on Protection of Competition (CPC) opens in-depth investigation into “Eurohold Bulgaria” AD’s (ID No. 175187337) intention to acquire indirect sole control of „CEZ Bulgaria“ EAD (ID No. 131434768), „CEZ Razpredelenie Bulgaria“ AD (ID No. 130277958), „CEZ Electro Bulgaria“ AD (ID no. 175133827), „CEZ Trade Bulgaria“ EAD (ID No. 113570147), „Free Energy Project Oreshets“ EAD (ID no. 201260227), „Bara Group“ EOOD (ID No. 120545968) and „CEZ Information and communication technologies Bulgaria“ EAD (ID No. 203517599), (together „CEZ’s undertakings in Bulgaria”).

Based on the provided information and evidence with regard to case No. CPC/822/2019 the Commission’s analysis found that the concentration leads to conglomerate effects in the insurance market and the electricity sector. Merging of the activities and resources of two large economic groups, operating on the concerned markets, would impact considerably their market position. Such concentration will create a significant advantage for the participants in the transaction in view of the serious financial requirements towards the traders in the free electricity market, in particular the provision of collaterals in various forms, incl. suretyship.

The full text of the decision is available in the public electronic register of The CPC at http://reg.cpc.bg/.