Bulgaria is a market United Group has been particularly active in in recent years.
As a result, its assets there now include Nova, one of the country’s two leading commercial broadcasters; the incumbent telco Vivacom; Sofia-based Net 1; and part of the leading pay-TV operator Bulsatcom.
However, it has not had things all its own way and the Commission for Protection of Competition (CPC) is currently investigating its proposed acquisitions of Networx and TelNet, while the Supreme Administrative Court is expected to shortly rule on its acquisition of N3.
Just as importantly, Yettel Bulgaria, which is part of the Czech PPF Group, has just asked the CPC to ban United Group’s proposed acquisition of Bulsatcom’s key assets. In a statement supplied to the local media, it said that the sale of these assets, in practice to a wholly owned subsidiary of United Group named Slovenia Broadband, would lead to the creation of a dominant player claiming over 60% and nearly 40% shares of Bulgaria’s respective TV distribution and internet access markets.
Yettel Bulgaria also said it had asked the CPC to launch an investigation into a possible violation of the Law on Protection of Competition regarding the transaction leading to a change in control of Bulsatcom.
Bulsatcom was in fact acquired in September 2022 by the entrepreneur Spas Rusev through a company named Viva Corporate. It was subsequently reported that the funds for the transaction were obtained from United Group in the form of a loan worth €126.5 million.
Perhaps not surprisingly, United Group has responded vigorously to Yettel Bulgaria’s action. In particular, it was critical of Yettel’s request to the CPC to combine two different procedures related to Slovenia Broadband and Viva Corporate.
Significantly, a third party – A1 Bulgaria – has been drawn into the dispute by also asking the CPC to investigate United Group’s proposed acquisition of Bulsatcom’s key assets.
Back in 2021, PPF Group and United Group traded blows in Serbia, with the former’s subsidiary Telenor (now Yettel) Serbia dismissing claims it was working with the incumbent Telekom Srbija to undermine United Group’s position in the country.
Given the finely balanced nature of the market in Bulgaria, with Bulsatcom, Vivacom and A1 all competing for market share, this particular dispute could run for some time.
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