Bulgaria's competition authority said on Friday that it gave the green light to state-owned Bulgarian Development Bank (BDB) to absorb its fully-owned unit BDB Factoring.
According to the antitrust body, the notified transaction should be defined as a restructuring within a group, therefore the planned absorption will not lead to concentration among enterprises, the Commission for Protection of Competition (CPC) said in its decision to approve the merger.
The aim of the restructuring within the BDB group is optimisation, future development and offering of factoring services by the lender, CPC said.
Interested parties can challenge the decision before Sofia Region Administrative Court by May 28.
According to information published on BDB Factoring's website, the company was established in 2019, as part of the BDB financial group. BDB Factoring provides working capital for the business through the transfer of ownership of receivables, without the requirement for material security.