Archive for October, 2010

Acquisition of 400MW District Heating and Electricity Plant is Cleared by Competition Authority

Thursday, October 21st, 2010

Borislav Boyanov & Co. represented the Russian conglomerate Mechel in the merger control procedure to review its proposed acquisition of sole control over the district heating and electricity company in Ruse, Bulgaria, Toplofikatsia – Ruse. Toplofikatsia – Ruse is the sole district heating operator in the Ruse region, and also has two condensing power generation units (of which one is currently operational), in all having total installed capacity of 400MW.

Mechel is one of the leading Russian companies, whose business includes four segments: mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, nickel, steel, ferrochrome, ferrosilicon, rolled products, hardware, heat and electric power. It mines and sells coal and coke worldwide from the mines owned by it in Kuzbass and Yakutsk mining regions in the Russian Federation.

The Bulgarian Commission on Protection of Competition (CPC) unconditionally approved the proposed acquisition on October 19, 2010.

Borislav Boyanov & Co.’s team supporting Mechel in the merger control procedure was led by partner Peter Petrov.

Unconditional Clearance for Horizontal Merger in Food Retailing

Friday, October 1st, 2010

Borislav Boyanov & Co. successfully obtained merger clearance for a major German food retailing chain, relating to the acquisition of the local assets of another international food retailer, active in Bulgaria.

The case was referred by the European Commission to the Bulgarian competition authority following a request made under Art. 9 of the EU Merger Regulation, raising concerns in respect of competition in several local markets in the country.

Following extensive investigation, the Bulgarian Commission for the Protection of Competition came to the conclusion that the transaction will not affect negatively competition in any settlement area, and further that Bulgarian food retailing markets are dynamic and competitive. The Commission further held that temporarily high shares based on commercial space are not a meaningful measure of market power. It defined a downstream market comprising both modern and traditional trade, where supermarkets, hypermarkets, discounters as well as traditional convenience stores compete. In terms of geographic scope, the market was defined as the territory of the relevant residential areas (20-30 minutes drive by car), however it was confirmed that Sofia is a single relevant market, despite travelling distances within the city.

The firm’s team on the case was led by Managing Partner Borislav T. Boyanov and partner Peter Petrov.