CEZ Withdraws its Investments from Bulgaria

CEZ Withdraws its Investments from Bulgaria

At the beginning of 2018, the Czech electricity distribution company CEZ EAD announced that it is selling its assets in Bulgaria to the Bulgarian company Inercom at a price of EUR 320 million. In September 2018 the deal was suspended by the Bulgarian Commission for Protection of Competition, which ruled that this transaction will lead to Inercom’s establishment of a dominant position on the photovoltaic power generation market.

Currently, the deal is not a fact due to a decision of the Commission for Protection of Competition, which has been appealed before the Supreme Administrative Court. The proceedings will remain suspended until the Supreme Administrative Court rules on the validity of CPC’s decision to block the deal following Inercom’s initial notification. Meanwhile, Inercom issued a statement saying that it is working towards receiving regulatory approval and completing the deal. Inercom Bulgaria has the support of global investment banks for the finalisation of the transaction. According to data from CEZ Group’s 2017 annual financial statement, the price of the transaction is EUR 326 million.

At the beginning of 2018, the Czech electricity distribution company CEZ EAD announced that it is selling its assets in Bulgaria to the Bulgarian company Inercom at a price of EUR 320 million. In September 2018 the deal was suspended by the Bulgarian Commission for Protection of Competition, which ruled that this transaction will lead to Inercom’s establishment of a dominant position on the photovoltaic power generation market.

Currently, the deal is not a fact due to a decision of the Commission for Protection of Competition, which has been appealed before the Supreme Administrative Court. The proceedings will remain suspended until the Supreme Administrative Court rules on the validity of CPC’s decision to block the deal following Inercom’s initial notification. Meanwhile, Inercom issued a statement saying that it is working towards receiving regulatory approval and completing the deal. Inercom Bulgaria has the support of global investment banks for the finalisation of the transaction. According to data from CEZ Group’s 2017 annual financial statement, the price of the transaction is EUR 326 million.