SALE OF BOYANA FILM ALLOWED BY CPC ON THREE CONDITIONS
The Commission for Protection of Competition (CPC) allowed Nu Image Bulgaria EOOD to purchase 95% of Boyana Film's capital. However, the deal shall be effected on three conditions.For a period of five years neither Boyana Film AD nor Nu Image Bulgaria EOOD shall be allowed to apply for state assistance as per Chapter 5 of the Film Industry Act. The second condition set by the CPC is that for five years Nu Image Bulgaria EOOD would retain its rights on the pavilions used prior the concentration. The ones which Boyana Film EAD has now and the pavilions that will be built in fulfilment of the investment programme shall be given to other producers as well at market conditions.
The third condition for effecting the sale deal is that Nu Image Bulgaria EOOD fulfils the commitments, undertaken in the investment plan with the privatisation agreement in the volume and terms, specified in it. The buyer is also obliged to present at the end of each calendar year to the CPC information and proof about the fulfilment of these conditions and regarding the final realization of the investment plan. In case of non-fulfilment of the third condition the CPC has the right to revoke the given permission for concentration.
After the analysis made by the CPC it was established that the forthcoming deal will strengthen the sides' dominant position. Nevertheless, a number of positive effects are expected as a result of the merger as well. In the first place, Boyana Film's financial state will be stabilized when the investments projected by Nu Image Bulgaria are made. That will strengthen the company's positions on the Bulgarian market and will improve its competitiveness abroad.