Bulgarian antitrust regulator clears Sportland's deal for Prima Magna

The transaction will not have horizontal, vertical or conglomerate effects on the real estate market in the country and will not change the market shares of the parties involved, given that that they operate in different regional real estate rental markets, the Commission on Protection of Competition said in a statement on Friday.

Prima Magna Group is active in renting own real estate properties in the northeastern city of Targovishte. The group emerged from the Targovishte-based battery manufacturing unit of Luxembourg-based EnerSys Holdings.

The Sportland group is directly controlled at 75% by Resource Fund, managed by Petar Gospodinov, who also owns the remaining 25%, according to the CPC statement. Gospodinov has direct or indirect control over 16 other companies, including renewable energy developers Dupnitsa Solar Energy, Lopushna Energy, Energy Projects Bulgaria, Eco Bat Bulgaria, Chernogorovo Energy, Solar Leasing and RES Projects.

In January, Sportland signed a preliminary agreement to acquire 65.86% of in Prima Magna Group, or 735,773 shares of 1 lev in par value each. Recocycling will retain the balance of 33.94%. A definitive agreement on the deal is subject to antitrust clearance and remains to be signed, the CPC statement showed without providing financial details.

The transaction was notified to the antitrust regulator in October.