Smurfit Kappa Secures Anti-Trust Nod for Bulgarian Vitavel Acquisition

SEATTLE (Scrap Monster):  Smurfit Kappa Group plc- Europe’s leading corrugated packaging company announced that it has received approval from Bulgaria’s Commission for Protection of Competition (CPC) to acquire Bularian company Vitavel. The approval by Bulgaria’s anti-trust authority is considered as a major milestone in the acquisition of assets of the Lovech-based company. It must be noted that Smurfit Kappa had sought anti-trust nod from the CPC in mid-February this year.

According to the Bulgarian authority, the combined market share of Smurfit Kappa Group’s local units and Vitavel on the country’s corrugated fiberboard and corrugated fiberboard packaging markets is not likely to exceed 15%. Consequently, the transaction is not expected to negatively impact competition, the anti-trust body said.

Earlier in March 2019, Smurfit Kappa had completed the takeover of Bulgarian corrugated board and packaging manufacturer Balkanpack, who mainly supplies corrugated packaging to the food, agricultural, cosmetic, pharmaceutical and chemical industries.

The acquisition of the above two Bulgarian companies is likely to strengthen Smurfit Kappa’s market position in the Balkan region. It will create a platform for own growth on the Bulgarian market. Incidentally, Smurfit Kappa Europe had reported revenue of 11.8 million euro from its Bulgarian operations in 2017.

Currently, Bulgaria’s Vitavel Invest holds 84.73% stake in Vitavel.