The Bulgarian Competition Protection Commission (CPC) has rejected the planned €335m sale of ČEZ's assets in Bulgaria to the insurance and asset management holding company Eurohold, considering that Eurohold would create conglomerates in the national insurance market and electricity sector.
In June 2019, the Czech energy group signed an agreement with Eurohold to diverst its assets in Bulgaria, including seven companies mainly active in power distribution and supply, namely ČEZ Bulgaria, ČEZ Elektro Bulgaria, ČEZ Razpredelenie, ČEZ Trade Bulgaria, ČEZ ICT Bulgaria, Free Energy Project Oreshets and Bara Group. The group had earlier signed a sales agreement with Inercom (February 2018), but the transaction was blocked in June 2018 over risks of dominant position in the power sector. In September 2018, Inercom divested some solar power assets to save the deal, but ČEZ cancelled it in April 2019, citing "unlawful obstructions of the Bulgarian State".
ČEZ entered the Bulgarian market in 2004, acquiring a 67% stake in the power distribution companies of the Stolichno (Sofia), Sofia region and Pleven and a further 33% stake in 2012. Since massive demonstrations over electricity prices in 2013, ČEZ has been at odds with the Bulgarian government, which threatened regularly the company to revocate its distribution licence. In 2017, ČEZ sold the 1,265 MW Varna coal-fired power plant that had been idle since 2012 and was stopped due to non-compliance with environmental standards. The group is now seeking to exit Bulgaria and to sell its remaining assets.
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