May 9 (SeeNews) - The Bulgarian competition authority said on Tuesday that it has unconditionally cleared the proposed acquisition of local tunnel building specialist Global Construction by Glavbolgarstroy International, a subsidiary of local civil engineering group Glavbolgarstroy.
Under the deal, Glavbolgarstroy International will acquire 100% of the registered capital of Global Construction from the target company's two owners, the competition authority said in a statement. Global Construction's equity comprises 100,000 ordinary shares of 1 lev in par value each.
You can subscribe to our M&A newsletter here
The transaction, for which the buyer sought approval in March, is expected to create synergies for the buyer, eliminating the need for subcontractors and reducing the cost of the company's services in the construction of transport infrastructure.
Over the past three years, Global Construction has been active in projects such as the construction of Bulgaria's longest road tunnel, Zheleznitsa, part of the Struma motorway in southwest Bulgaria, as well as works along Bulgaria's northern Hemus motorway.
The combined market share of the two entities does not exceed 10% and the companies have complementary rather than competing activities in the construction of transport infrastructure, according to the antitrust authority's decision.