Bulgarian regulator clears United Group's buy of Bulsatcom

The notified transaction will not significantly affect competition on the Bulgarian retail markets for TV programme distribution and fixed internet access provision, the Commission on Protection of Competition (CPC) said in a statement on Thursday.

"Following the acquisition, the new economic structure will not operate independently of its competitors, customers and suppliers, given the structure and dynamics of the relevant markets," the CPC said.

At the end of December, CPC launched an in-depth investigation of the deal, saying it would lead to both horizontal overlap and vertical effects.

However, the CPC's investigation found that there are participants with market shares comparable to those of Vivacom and the competitive landscape will not change post-acquisition. The retail television distribution market will remain competitive, with Nova facing pressure from other broadcasters and operators.

The deal aims to enhance United Group's presence in Bulgaria and improve services for Bulsatcom's customers, taking into account Bulsatcom's financial difficulties, shrinking subscriber base and its application for the launch of bankruptcy proceedings. Delaying the deal could jeopardise Bulsatcom's commercial operations, affecting its subscribers, the CPC said.

Earlier this month, United Group said that a statement by the leader of one of Bulgaria's governing parties WCC, Kiril Petkov, that a potential regulatory approval of the proposed acquisition of Bulsatcom is a cause for concern, represents "unacceptable political interference". The group sought approval for the deal from the competition regulator in November, causing telecommunications operators A1 Bulgaria and Yettel Bulgaria to file appeals against it.