A buyer for KT International has been approved. Photo credit: KT International
Alpha Partners Bulgaria, a subsidiary of Liechtenstein-based Alpha Investments, has received approval to purchase KT International, as confirmed by Bulgaria’s Commission on Protection of Competition (CPC).
The specific value of the deal was not disclosed.
According to a SeeNews report, CDC said the transaction will not result in notable horizontal or vertical overlaps that could significantly restrict competition or establish a dominant position in relevant markets. This includes the production and sale of cigarettes, as well as the procurement of ethyl alcohol by competitors of the target company.
KT International, based in Plovdiv, has a registered capital of approximately BGN4.98 million (US$2.8 million) and was previously owned by Sigma Consulting. Additionally, the cigarette producer possesses a 1.999 MW grid-connected solar photovoltaic system for its own use.
In 2022, KT International produced goods valued at a total of BGN95 million (US$53.2), as per the CPC statement. KT International is the sole producer of tobacco products that sells its goods in the Bulgarian market, while its competitors export all of their output. KT International has maintained a 5-10% share in the Bulgarian cigarette distribution market between May 2021-May 2023, preceded by four major global tobacco producers.
Before the acquisition, VP Brands International, which is part of the acquiring consortium, served as a provider of ethyl alcohol to KT International for use as a diluent in the cigarette production process. However, VP Brands does not possess a significant market share in the production and wholesale of ethyl alcohol, and the limited quantities it supplies to KT International will not impact the supply side.