Competition review of Nomad Capital Group deal
Bulgaria’s competition authority has opened an in-depth investigation into Nomad Capital Group’s planned acquisition of the inactive Maritsa East 3 coal-fired power plant and ContourGlobal Operations Bulgaria. The review covers the proposed ownership structure, transaction financing, and the planned reorganisation of assets before completion. The investigation is focused on how the transaction is structured and implemented ahead of closing.
The assessment will also examine the companies and individuals behind Nomad Capital Group and any links to other businesses operating in Bulgaria’s energy sector. Energy regulators are expected to evaluate whether the restructuring alters the effective scope of the transaction. That includes determining which generation, storage and commercial activities should be included in the competition review.
Ownership structure and role of NEK
Nomad Capital Group is seeking majority stakes and sole control of the two businesses involved in the planned transaction. State-owned National Electricity Company (NEK) would remain a shareholder following the deal. The authority’s review will therefore consider how control rights are allocated between Nomad and NEK.
The investigation also extends to how asset ownership changes before completion. The transaction includes plans to separate a solar power plant and a battery storage facility from the acquired business. Those assets are expected to be transferred to a newly created joint-stock company before the deal closes.
Scope implications for generation, storage and trading
The competition review will assess whether that pre-closing restructuring changes which activities fall within the transaction’s effective scope. Regulators will look at which generation, storage and commercial operations should be covered as part of the competition analysis. This is relevant to how control over those elements would be combined under Nomad’s planned structure.
Nomad is already active in liberalised wholesale electricity trading. Control of a large thermal generation asset could create horizontal overlap in electricity trading and vertical links between generation and downstream sales. The authority’s deeper review is expected to extend the regulatory process.
Maritsa East 3 status and potential impact on market balance
Maritsa East 3 is currently inactive, but its ownership remains strategically important for Bulgaria’s power system. Any potential return of capacity would affect Bulgaria’s generation balance, coal-sector restructuring and regional power trading. The central question for regulators is not only who buys the plant, but which assets are included in the transaction.
The authority will therefore focus on how control of generation, storage and trading activities would be combined after completion. This approach reflects that the restructuring plans could influence what is considered part of the deal for competition purposes.
