Bulgaria’s Commission for Protection of Competition (CPC) announced the initiation of proceedings to examine whether the conditions attached to the 2023 clearance of the concentration between Tirbul EAD and United Dairy Company EAD have been properly implemented.
The review follows the conclusions of the CPC’s interim sectoral analysis of the food market, adopted in December 2025, which for the first time included a comprehensive assessment of the milk and dairy products sector. The authority will assess whether United Dairy Company EAD—formerly Tirbul EAD and operating under brands such as Vereya and Olympus—has complied with the commitments that were central to the original merger approval.
At the time of the 2023 transaction, the CPC identified high combined market shares and expressed serious concerns that the concentration could impede effective competition by creating a dominant position. These concerns were addressed through an in-depth investigation, during which the acquiring company submitted evidence of anticipated efficiencies and public interest benefits. These included investments in new technologies, modernization of production facilities to improve product quality, and support programs for Bulgarian dairy farmers. On this basis, the CPC authorized the transaction under Article 26(5) of the Law on Protection of Competition, concluding that the expected positive effects would outweigh the potential harm to competition.
However, the interim findings of the sectoral analysis point to substantial structural imbalances across the dairy supply chain. The CPC identified a sharp decline in domestic raw cow’s milk production alongside rising imports of milk and dairy products, developments that raise concerns about the sector’s long-term sustainability and increasing reliance on foreign suppliers. Industry participants participating in the analysis highlighted the merger of the two largest producers as a contributing factor to a deterioration in market conditions, citing the enhanced market power of the merged entity and its capacity to influence purchasing terms and price levels for raw milk as the country’s largest buyer.
The CPC also noted the absence of publicly available information demonstrating the implementation of the investments and farmer support measures that were presented as key justifications for approving the merger.
Against this backdrop, the authority has launched proceedings to verify whether the concentration has been carried out in accordance with the conditions and declared intentions underpinning its authorization. Should the CPC find non-compliance, it may impose behavioral or structural remedies and may levy fines of up to 10 percent of the undertaking’s turnover.