Shimano seeks Bulgarian regulator's nod for Eurotrade deal

The transaction is expected to affect the local retail market for bicycle components and equipment, the Commission for Protection of Competition (CPC) said in a statement.

The competition regulator invited third parties to comment on the potential effect on relevant markets in Bulgaria.

Shimano Europe intends to gain control over BG-Eurotrade as well as over ROM-Eurotrade, Greece's Eurotrade Ltd and CS-Eurotrade by purchasing an indirect 51% stake in each of Eurotrade's four divisions in Bulgaria, Romania, Greece, Slovenia, according to the notice filed with the CPC.

The Netherlands-based suitor aims to indirectly acquire 26.01% of SBM-Eurotrade in Serbia, the notice also showed.

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 Southeast Europe (SEE) region.

Third-quarter sales remained strong in the European market, with firm demand in some areas of Eastern Europe, Shimano said in its most recent interim statement issued at the end of October. Despite cooling demand in some parts of Europe due to high inflation and tighter monetary policy fuelling fears of recession, Shimano reported an 18% annual increase in net sales to 467.7 million Japanese yen ($3.4 million/3.3 million euro) in the first nine months of 2022.

The Japanese company was first reported by trade media to be planning a reorganisation of its SEE distribution business as far back as in 2017.

(100 Japanese yen = $0.733/ 0.697 euro)