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Inercom Bulgaria submits new notification on CEZ deal to watchdog after a restructuring

Inercom Bulgaria submits new notification on CEZ deal to watchdog after a restructuring

21 September 2018 | 17:00 | FOCUS News Agency
Sofia. Inercom Bulgaria has submitted a new notification on the CEZ deal to the Commission for Protection of Competition (CPC) after a restructuring that the company said was a response to all concerns about concentration stated by the antitrust regulator. In a press release, Inercom said that after the restructuring in its group, the companies producing electricity from photovoltaic plants are not part of its portfolio.
Focus recalls: On July 19, the regulator prohibited Inercom from acquiring CEZ’s assets in Bulgaria, saying that the deal might threaten market competition. Precisely the six photovoltaic power plants owned by the Inercom group emerged as an obstacle to the deal. According to CPC, with the acquisition the buyer will have a significant advantage over the other photovoltaic power producers.
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Inercom Bulgaria appeals decision of competition watchdog stopping CEZ deal

Inercom Bulgaria appeals decision of competition watchdog stopping CEZ deal

30 July 2018 | 15:15 | FOCUS News Agency
Sofia. Today, 30 July 2018, within the statutory time limit, Inercom Bulgaria has filed an appeal to the Supreme Administrative Court (SAC) against a decision of the Commission for Protection of Competition of 19 July 2018, which prohibited the company from acquiring the Bulgarian assets of Czech utility CEZ, the company said.
“We have read the document and analysed in detail the reasons for the negative decision of the anti-monopoly regulator. We expect a quick and fair decision by the SAC,” said Milena Stoeva, Chair of Inercom Bulgaria’s Board of Directors.
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Kaloyan Staykov, economist: CPC’s decision to halt CEZ deal is odd

Kaloyan Staykov, economist: CPC’s decision to halt CEZ deal is odd

25 July 2018 | 10:34 | FOCUS News Agency
Sofia. The decision of the Commission for Protection of Competition (CPC) to halt the deal for CEZ’s assets in Bulgaria is a strange one, Kaloyan Staykov, senior economist at the Institute for Market Economics, told Focus Radio. Whatever the deal, if the buyer or the acquired company is large, CPC may use it as an argument to stop the deal. CPC is tasked with assessing if the acquisition could lead to a dominant position in the market and distort competition, and the assessment is done with regard to certain limits, namely 40% of the market, Kaloyan Staykov said. He added that CEZ does not have a 40% market share.
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Bulgaria’s competition watchdog prohibits the acquisition of local assets of CEZ by Inercom Bulgaria EAD

Bulgaria’s competition watchdog prohibits the acquisition of local assets of CEZ by Inercom Bulgaria EAD

19 July 2018 | 14:35 | FOCUS News Agency
Sofia. The Commission for the Protection of Competition (CPC) has prohibited Inercom Bulgaria EAD from acquiring the local assets of Czech utility CEZ: CEZ Bulgaria EAD, CEZ Razpredelenie Bulgaria AD, CEZ Electro Bulgaria AD, CEZ Trade Bulgaria EAD, Free Energy Project Oreshets EAD and Bara Group EOOD, the regulator said in a statement.
The Commission has found that there is a horizontal overlap between the parties to the concentration in the market of electricity production and wholesale supply from photovoltaic power plants. The transaction would also produce vertical effects on downstream markets, namely: electricity distribution, supply, trade, and coordination services for balancing groups. In the electricity distribution and supply market, the CEZ group has a natural monopoly in the area specified in its licenses. At the same time, CEZ Electro Bulgaria AD and CEZ Trade Bulgaria EAD constitute a substantial market share based on the traded volumes of electricity on the free market, the statement reads.
Based on the overall analysis, it can be concluded that there is a risk that the deal would lead to the creation or strengthening of the dominant position of the merged group. In view of the wide range of services of the companies to be acquired and their importance for Bulgaria’s energy system, there is a reason to assume that this is concentration of strategic importance to the country and its potential effects would have a direct impact on national security. The Commission considers that the existence of significant vertical effects would offer considerable advantage to the merging parties over their competitors, which would hinder effective competition in the analysed markets.
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PICTURE OF THE DAY
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Win for Greens in Bavaria. October 15, 2018;

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Prize drawing in Q&A game European Test for Masters. July 30, 2018;
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