January 19 (SeeNews) - Bulgaria's competition authority said on Thursday that it endorsed the intention of Shimano Europe, a unit of Japanese bicycle components manufacturer Shimano, to acquire a stake of 51% in the local unit of Greece-based distributor partner Eurotrade.
The notified transaction could not harm competition in view of the positions of the involved parties in the bicycle components markets, the Commission on Protection of Competition (CPC) said in a statement.
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The Netherlands-based Shimano Europe plans to indirectly acquire 51% interest in Eurotrade's units in Bulgaria, Romania, Greece and Slovenia - BG-Eurotrade, ROM-Eurotrade, Eurotrade Ltd and CS-Eurotrade, respectively. The deal also involves the indirect purchase of a 26.01% shareholding in the Serbian unit, SBM-Eurotrade.
The transaction is in line with Shimano Europe’s strategy to optimise its costs in the downstream distribution channels, including in Bulgaria, CPC said. Following completion, BG-Eurotrade will continue to operate as a distributor of Shimano’s bicycle parts and related products. This means there will be no change in the competitive environment of the affected respective markets, the regulator noted.
Established in 1921, Osaka-headquartered Shimano manufactures bicycle parts, fishing tackle and rowing equipment and apparel.
Based in Patras, Greece, Eurotrade was set up in 2017 to exclusively distribute Shimano bicycle products in Greece and Cyprus. It is also in charge of sales, logistics and maintenance operations in the whole region of Southeast Europe.