The automobile part-and-component-production sector’s expansion in recent years has become a motor of the Bulgarian industry and economy. Since the Japanese company Yazaki’s investment some 15 years ago, and following Bulgaria’s EU accession in 2007 – and thanks to the common European market and the globalization of car production – Bulgarian car part manufacturers have successfully integrated into European and international supply chains as suppliers and subcontractors for global brands such as BMW, Mercedes, Renault, Nissan, Audi, Ford, Porsche, and Tesla. Nowadays, 80% of all cars have parts produced in Bulgaria. In some specific segments, Bulgarian manufacturers have become absolute market leaders - for example, 90% of the airbag sensors in all European cars are produced in Bulgaria.

Bulgaria is well-known for its roses, more precisely its oilseed roses (маслодайни рози). Oilseed roses are famously used to produce rose oil, which is one of the most expensive oils, commonly referred to as "liquid gold". Rose oil is used in the perfume industry, but the Bulgarian oilseed rose also has many other applications. The petals are used in jams, jellies, sweets and liqueurs. Products derived from processing the blossoms are used in cooking as flavouring, flavour enhancers and colouring agents. In addition to the oil, processing the oilseed rose blossom also produces rose water, which is used both in the perfumery and food industries.

Georgiev, Todorov & Co has successfully defended the rights of Multi-Profile hospital for Active Treatment Europe against the Ministry of Health of Bulgaria.

Under Bulgarian anti-money laundering law, all obliged entities must adapt their internal rules in accordance with Article 101 of the Bulgarian Anti-Money Laundering Act ("AMLA") within six months following the publication of a national assessment of the risks related to money laundering and terrorism financing ("National Risk Assessment") on the website of the State Agency for National Security ("SANS").

CMS has successfully assisted Korea's SDN Company Ltd on its successful regaining of control over photo-voltaic producer EU Sunday AD, which operates three projects in Bulgaria with 15 MWp installed capacity.

Kambourov & Partners has advised Yotpo on its acquisition of SMSBump.

“Unfortunately, the political situation in Bulgaria is somewhat fragile,“ says Victor Gugushev, Partner at Gugushev & Partners in Sofia. “Parliament made changes to the legislation regarding the gambling industry, but it based its decision on unclear grounds and motives.“ In addition, he says the National Lottery of Bulgaria is set to be “practically nationalized“ which could have a serious impact on the economy. “For the past three or four years, the taxes paid by the National Lottery amounted to almost a quarter billion euros. I’m not commenting whether that is right or wrong, but I am concerned about the way it was done and the agenda behind it,“ he says.

Pursuant to the Bulgarian Accountancy Act (Закон за счетоводството) companies must publish in the Commercial Register and Register for Nonprofit Legal Entities ("Commercial Register") their annual financial statements by 30 June of the calendar year following the reported period. Companies which have not carried out any activity during the reported period are exempt from this obligation. Prerequisite for the exemption is that the company's lack of activity is expressly declared before the Commercial Register.

From 1 January 2020, the Bulgarian Commission for the Protection of Competition (the "CPC") has been applying new merger filing guidelines (the "Guidelines"). The former guidelines, applied for more than ten years, did not differentiate between transactions (simpler or more complex) irrespectively of their potential competition concerns. This unified approach was unnecessarily bureaucratic with regard to concentrations with insignificant market effect (i.e. insignificant combined shares of the parties), which required a detailed merger filing only because the parties' turnover reached the statutory thresholds. At the same time, the former guidelines did not seem extensive enough for more complicated transactions (with substantial market shares of the parties), and it was not unusual for the CPC to send to the parties several requests for additional information to assess and clear a concentration. Naturally, this approach led to delays both in simpler and more complex transactions.

Tokushev and Partners has advised DZI - General Insurance on its acquisition of Mall Varna for EUR 16 million from Hydrostroy.

Kinstellar has advised GTC on its lease of of 4,000 square meters in the Advance Business Center II, an office building in Sofia, Bulgaria, that is expected to open near the end of this year.

Noerr and Penkov, Markov & Partners have advised private equity firm Aurelius Equity Opportunities SE & Co. KGaA on the acquisition of the Renewable Power Systems and Protection Relays businesses from NASDAQ-listed Woodward, Inc.

Managing Partner Diana Dimova reflects on Kinstellar Sofia’s fifth anniversary

CMS has advised Hyundai Electric & Energy Systems on the sale of its Bulgarian subsidiary Hyundai Heavy Industries Co. Bulgaria AD to the IBG Group. EY Law reportedly advised the buyers.

Attorney-at-Law Nikolay Cvetanov has been named Managing Partner at Penkov, Markov & Partners in Bulgaria.

Kambourov & Partners has advised Spain's Bankia bank on a loan portfolio transfer in which part of the receivables was secured by collateral provided by Bulgarian companies.

Georgiev, Todorov & Co has successfully defended the interests of Multi-profile Hospital for Active Treatment Doverie against Bulgaria's National Health Insurance Fund in a dispute involving payment for medical care provided by the hospital to health-insured persons above the limits set by the NHIF.

DGKV has successfully defended the interests of Mayoral Moda Infantil S.A. and its Bulgarian subsidiary Mayoral Bulgaria EOOD before the Bulgarian Commission for Protection of Competition in a case brought by their commercial partner, Comsed, involving allegations of superior bargaining position.