December 23 (SeeNews) - Bulgaria’s competition authority said it would look into the acquisition of pay-TV and broadband services provider Bulsatcom by Sofia-based investment company Viva Corporate Bulgaria represented by businessman Spas Roussev.
The Commission on Protection of Competition (CPC) will estimate whether the transaction is leading to business concentration, it said in a statement on Thursday.
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The probe is being launched after local telecommunications services providers Yettel Bulgaria and A1 Bulgaria alerted the CPC that Viva Corporate had taken control of Bulsatcom by acquiring at least 75% of its sole owner, UK Bulsatcom Investment Limited. The antitrust worries stem from information that the acquisition was financed through a loan from Dutch-based multi-play and media provider United Group, the owner of Bulgarian Telecommunications Company (BTC) operating under the Vivacom brand.
Spas Roussev was a main shareholder in BTC before the company was acquired by United Group.
According to Yettel Bulgaria, the creditor is likely to be able to influence decisions related to Bulsatcom’s activity through the terms of the loan. Allegedly, Bulsatcom’s mobile and optical network was transferred to entities linked to United Group to partly repay the loan.
Vivacom is providing mobile, fixed-line telephony, fixed-line broadband and pay-TV services nationwide. Bulsatcom broadcasts over 240 TV channels, including 230 HD channels, through its DTH и IPTV2.0 platforms, according to an earlier statement by Viva Corporate Bulgaria.