CEZ Bulgarian units' share price plunges after Eurohold deal falls through

CEZ Electro Bulgaria [BUL:1CZ] shares traded 16.81% lower at 19,800 levs as at 9:45 CET on Friday, while CEZ Distribution Bulgaria shares traded 4.95% down at 192 levs.

Eurohold Bulgaria shares had not traded by that hour.

The Commission for Protection of Competition (CPC) decided to ban the acquisition of the assets of CEZ by Eurohold Bulgaria because combining the experience of the economic resources and market positions of the two groups in the electricity and insurance sector creates prerequisites for the notified deal to lead to the establishment or strengthening of dominant position, the anti-trust body said in its decision on Thursday.

If concluded the deal would lead to considerable advantage for the participants in the concentration which would hamper effective competition on the respective markets, the regulator said.

The decision can be appealed before the Sofia Administrative Court.

The assets of CEZ in Bulgaria comprise power utility CEZ Distribution Bulgaria [BUL:3CZ], power supplier CEZ Electro Bulgaria [BUL:1CZ], licensed electricity trader CEZ Trade Bulgaria, IT services company CEZ ICT Bulgaria, solar park Free Energy Project Oreshetz, biomass-fired power plant Bara Group and CEZ Bulgaria.

CEZ's earlier deal with Sofia-based Inercom for the sale of the group's assets in Bulgaria fell through as CEZ failed to obtain approval from the CPC.

($ = 0.8992 euro)