December 2 (SeeNews) - Bulgaria's Commission for Protection of Competition (CPC) said that it granted approval to local lead and zinc production group KCM 2000 and private individual Rumen Tsonev to acquirе the 50% stake in ore mining company Varba Batantsi held by local company Minstroy Holding.
The notified transaction can not lead to the creation or strengthening of a dominant position on the local market, the competition authority said in a statement on Wednesday.
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As a result of the notified transaction, KCM 2000 will be able to implement a major investment programme aimed at improving the ecological condition of the enterprises and the mines operated by KCM 2000, the CPC said.
According to data published on the website of KCM 2000, the share capital of Madan-based Varba Batantsi, is divided equally between KCM 2000 and Minstroy Holding. Varba Batantsi, part of KCM 2000 group, is mainly active in the extraction of lead-zinc ore and its processing into lead and zinc concentrates. According to commercial register data, Rumen Tsonev is a member of the supervisory board of Varba Batantsi.
Under the terms of a contract signed in October, KCM 2000 and Rumen Tsonev will buy a total of 25,000 Varba Batantsi's shares of 1 lev ($0.58/0.51 euro) in par value each from Minstroy Holding. Varba Batantsi's capital currently is divided into 50,000 shares of 1 lev in par value each.
The CPC's decision can be challenged before Sofia Region Administrative Court until December 15.
(1 euro = 1.95583 levs)