The Anti-Monopoly Office has begun analyzing the expected impact of the state’s energy-sector restructuring plan (CEZ selling its transmission grid to and buying regional power distributors from the state) on sector competition. Although it has 30 days to make its judgment, this period can (and probably will) be extended. We expect that the AMO could have objections to, in our view, the low valuation of the distributors to be purchased by CEZ (which effectively represents a subsidy from the state); otherwise, do not expect the AMO to object to the transaction.
Jiri Soustruznik