Bulgaria's competition regulator said it has granted approval for fuel retailer Shell Bulgaria to assume control of five filling stations in the city of Plovdiv through a long-term lease agreement with their owner, local company Emko-M.
The transaction will not materially hinder competition by creating a dominant position for Shell Bulgaria on the local fuel retail market, the Commission for Protection of Competition (CPC) said in a decision published on its website on Thursday.
After the lease, Shell Bulgaria's market share in both the national and the Plovdiv regional fuel retail market will not exceed 15%, the competition enquiry found.
The number of fuel stations which Shell Bulgaria will operate in Plovdiv will be comparable to that of sector players, such as Eko Bulgaria with nine, Petrol with eight, Sevi Oil with seven, Lukoil Bulgaria with six, OMV Petrol with five, and Nis Petrol and Rompetrol with four each, CPC noted.
The competition authority's conclusion was confirmed by submissions made by rival fuel retailers Lukoil, Eko Bulgaria and Petrol.
The aim of the planned transaction is to offset potential losses for Shell Bulgaria from the expiry in the early part of 2023 of lease agreements for nine filling stations. In addition, the lease will enable Shell Bulgaria, part of London-based oil major Shell Plc, to strengthen its presence in Bulgaria's second-largest city of Plovdiv, in part by making additional investments in the controlled assets, CPC's document showed.
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