Bulgarian Watchdog Clears Sofia France Auto Takeover of Kamor Auto

Business | November 27, 2012, Tuesday // 16:49|  views

Bulgaria’s anti-trust watchdog has cleared the takeover of BMW importer Kamor Auto by Peugeot importer Sofia France Auto. Photo by peugeot.bg

Bulgaria's Commission for Protection of Competition (KZK) cleared Tuesday a concentration via the acquisition of single control by Sofia France Auto AD, the main local importer of Peugeot, over local BMW dealer Kamor Auto EOOD.

The Commission ordered immediate implementation of the decision.

The deal will have an impact on several markets in the sector of motor vehicle sales and related services in Bulgaria.

After the concentration, the market shares of the participants will not exceed the threshold of 15%, which means that they will not have the power to exercise substantial competitive pressure.

The estimate of the anti-trust watchdog found that the cumulative market share of the participants in the concentration was below 1% on three of the markets under scrutiny, including sales of used cars, car service, and sales of spare parts.

On the markets of retail sales of new lightweight cars of up to 3.5 tonnes and sales of new L-category vehicles, the market shares of the participants were estimated at 10.12% and 7.6%, respectively, which is no cause for concern as regards potential negative impact on competitiveness because the markets are characterized by a competitive environment and low entry thresholds.

KZK cleared the deal on the grounds that it could not obstruct efficient competition on the respective markets.

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Tags: Commission for Protection of Competition, KZK, acquisition, car dealer, competitive, Competitiveness, anti-trust, watchdog, Sofia France Auto, Kamor Auto, Peugeot, BMW, car dealer


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