The Commission for Protection of Competition (CPC) is launching an in-depth investigation into the intention of "Nomad Capital Group" EOOD to establish sole control over "ContourGlobal Maritsa East 3" AD and "ContourGlobal Operations Bulgaria" AD. The decision follows a signal submitted to the CPC and the dissemination of information in the public domain regarding the possible links between companies within the "Nomad" group and other participants in the energy sector. The transaction, through which the majority stake in the capital of both companies will be acquired, also involves "National Electric Company" EAD as a shareholder.
To identify the ultimate beneficial owner of the acquiring enterprise and the scope of the economic group, the CPC will request additional information. Although according to the Commercial Register the sole owner of "Nomad Capital Group" EOOD is "Nomad Energy Company" EOOD, and the ultimate beneficial owner is listed as a specific natural person, the Commission emphasizes that only official data from the competent state authorities can reveal the actual scope of the group. The clarification of this data is essential for determining which enterprises and market shares should be taken into account during the analysis, as this is key to defining the affected markets and the market position of the participants.
The in-depth investigation procedure is being conducted on the basis of the Law on Protection of Competition. The law provides for such a type of review when an opinion from a specialized state regulatory body for the relevant sector is required, or when serious doubts arise regarding the source of financing for the transaction or the ultimate beneficial owner. Given the critical importance of the energy sector to society and the economy, any concentration in this sector requires a careful assessment of the potential impact on competition.
An important aspect of the investigation will also be the planned restructuring of assets. One of the preconditions of the deal is that the assets for renewable electricity production — including battery storage and the solar power plant — be separated into a new joint-stock company. Since the sectoral regulator has not yet issued an opinion on this restructuring, the CPC will request an official position from the Energy and Water Regulatory Commission (EWRC). This will allow the Commission to assess the impact of the separation on the scope of the transaction and to determine which activities and assets should be included in the concentration assessment.
The accelerated investigation has already revealed that "Nomad Capital Group" EOOD is a newly established company, part of the "Nomad" group, which operates on the free market for wholesale electricity trading. The CPC established that regarding the activities of "ContourGlobal Maritsa East 3" AD, the intention for concentration leads to horizontal effects in wholesale trading at freely negotiated prices, as well as vertical effects regarding the electricity sales and production market.
The KZC decision will affect the stability and competition of the energy market, which households and businesses in Burgas and the region depend on.
Any interested party has a 30-day period from the moment the decision is published in the CPC's electronic register to submit their opinion or information regarding the effect of the transaction on the competitive environment. It is noted that the intention to acquire control over "ContourGlobal Operations Bulgaria" AD and "ContourGlobal Maritsa East 3" AD was declared by "Nomad Capital Group" EOOD in August of this year.