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3CZ - CEZ Distribution Bulgaria AD News Story

BGN256 4.0  1.6%

Last Trade - 15/01/21

Sector
Utilities
Size
Small Cap
Market Cap £224.3m
Enterprise Value £239.6m
Revenue £170.9m
Position in Universe 146th / 638

Eurohold defends its plans to buy CEZ's Bulgarian assets

Tue 15th October, 2019 12:06pm
SOFIA, Oct 15 (Reuters) - Bulgarian company Eurohold
 4EH.BB  on Tuesday attempted to alleviate the concerns of the
country's competition regulator over its plans to buy Czech
utility CEZ's  CEZP.PR  Bulgarian assets.
    The Commission for Protection of Competition opened an
in-depth inquiry into Eurohold's 335-million-euro deal signed in
June, saying it might give the new group a serious competitive
advantage over the energy market in Bulgaria.  urn:newsml:reuters.com:*:nL5N26V4GO
    The regulator said that Eurohold, which has interests in
insurance and asset management, has a significant share of the
market in insurance guarantees, while some of CEZ's Bulgarian
companies are active in energy trade, which requires bank and
insurance guarantees. 
    Eurohold filed documents with the regulator that highlight
that its insurance companies do not have a leading market
position in insurance guarantees and do not currently offer such
guarantees to energy traders.
    Eurohold said that if the deal gets approval from the
regulator, the energy companies and the insurance companies will
be related parties in a new group, and deals between such
companies are restricted and even banned over a certain level
under European Union and Bulgarian regulatory rules.
    "That is why there is no way for the energy traders from the
new group to get or receive any competitive advantage in the
form of insurance guarantee from an insurer, part of the group,"
Eurohold said in a statement.
    The competition regulator has four months to complete its
investigation. 

 (Reporting by Tsvetelia Tsolova. Editing by Jane Merriman)
 ((tsvetelia.tsolova@thomsonreuters.com; +359-2-93-99-731;))
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