site.btaCommission for Protection of Competition Sends BTC Case to European Commission

Commission for Protection of Competition Sends
BTC Case to European
Commission


Sofia, February 20 (BTA) - The Commission for Protection of
Competition (CPC) has sent to the European Commission's
Directorate General for Competition a case of possible
concentration through acquisition of control of the Bulgarian
Telecommunications Company (BTC).

In an alert, the Technology Center - Institute of
Microelectronics AD assumed that a concentration through
acquisition of control of BTC had taken place.

The CPC found that a possible transfer of shares from Bromak
Telecom Invest AD to SHCO 79, registered in Luxembourg, would
lead indirectly to a change in BTC's ownership.

In November 2014, TC-IME signed an agreement with the now
defunct Corporate Commercial Bank (Corpbank) whereby the bank's
shares in Bromak Telecom Invest were transferred to TC-IME.

However, following Corpbank's closure in mid-2014, in July
Bromak Telecom Invest reportedly transferred its stake in V
Telecom Investment to SHCO 79. TC-IME pointed out that it was
not informed of the transfer of Vivacom shares to SHCO 79 and
requested an inquiry into the deal.

Vivacom, registered as Bulgarian Telecommunications Company
(BTC), is wholly-owned by Viva Telecom Bulgaria, a subsidiary of
Luxembourg-based V2 Investment . V2 Investment is wholly-owned
by V Telecom Investment, with its main shareholders listed as
follows: Bromak Telecom Invest (43.3 per cent), VTB Capital
(33.3 per cent) and creditors of the telecom (23.43 per cent).

The case file was sent to Brussels because the turnover in 2013
(the year preceding the alleged transfer) of at least two
companies involved in the deal is above the threshold laid down
in EU legislation. Above that threshold, control of
concentrations falls within the jurisdiction of the European
Union.

The CPC cites Council Regulation (EC) No 139/2004, under which
GD Competition handles cases of concentration with a Community
dimension, i.e. concentrations which meet the turnover
thresholds.

Under Article 21(3) of the Regulation, "No Member State shall
apply its national legislation on competition to any
concentration that has a Community dimension."

Having found that the transaction, if it is a fact, would fall
outside the ambit of the national legislation, the CPC concluded
that it cannot make an assessment whether the deal is a
concentration and how it might impact competition. PK/DD


/СН/