December 13 (SeeNews) - Bulgaria's Commission for Protection of Competition (CPC) said that it granted approval to local car parts trader Auto Plus Bulgaria to enter the shareholding structure of local peer Autogrand through a capital increase process.
The notified transaction has no potential to significantly impede competition on the car parts market in Bulgaria, particularly by creating or strengthening of a dominant position, as the parties to the deal hold a total market share of far below 40% combined, CPC said in its ruling on the deal last week.
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A preliminary agreement was signed between the parties in the notified transaction in August, according to which Auto Plus Bulgaria will acquire shares in the capital of Autogrand in several stages. In the first stage, Auto Plus Bulgaria will acquire a 20% stake in Autogrand as part of a capital increase procedure before further lifting its stake to 40% in the second stage of the transaction. The second stage of the deal is expected to be completed by the end of this year.
In the third stage of the transaction, which is expected to be wrapped up by the end of 2022, Auto Plus Bulgaria will grow its shareholding in Autogrand to 50% as part of a capital increase procedure. After the closing of the deal, Autogrand's operations will be carried out under the Auto Plus trademark, the CPC said.
Interested parties can challenge the regulator's decision before Sofia Region Administrative Court by December 20.
Auto Plus Bulgaria, based in the village of Lozen near Sofia, is a joint stock company mainly active in the sale of spare parts and motor oils. The firm has warehouses in Sofia, Plovdiv, Stara Zagora, Varna, and Rousse. Its distribution network comprises 37 stores in the country, including 22 under its own trademark Auto Plus and 15 franchises, according to information published on the company's website.
Autogrand, established in 1997, is specialised in the import and distribution of spare parts, lubricants and chemical products for cars and light trucks. Autogrand also maintains its own network of warehouses and shops in Bulgaria. According to commercial register data, private individuals Gencho Dobrev and Krasimir Kolev hold 50% of Autogrand's capital each.
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