Russia's Mechel Acquires 100% in Bulgaria's Russe Heating Utility

Bulgaria's competition watchdog said it would allow Russian mining and steel conglomerate Mechel to buy out 51% of the shares it does not own yet in the heating and power plant in the town of Russe on the Danube in northern Bulgaria from Slovenia's Holding Slovenske Elektrarne.

The proposed deal would not have any negative impact on the central heating or electricity market in Bulgaria, the state regulator, Commission for Protection of Competition (CPC), said in a statement.

In December 2007 the Russian company received green light to acquire a 49% stake in the company.

Earlier that year, Bulgaria sold its full stake in the utility, which owns and operates the power plant in the city, to Slovak power utility Slovenske Elektrarne for EUR 85,1 M.

Under the terms of the contract, Slovenske Elektrarne could not sell a majority stake in the company in the first three years after acquisition without the accord of the Bulgarian government.

Currently Toplofikatsiya-Ruse holds 2.8% of the electricity market in the country.