Bulgaria

Abstract

This chapter draws a picture of ownership and control change of large Bulgarian companies after the collapse of communism in 1989. Post-communist privatization has fundamentally changed the ownership landscape. First, in 2018–2019 the state was the largest shareholder in only 9% of the top 100 companies (down from 42% in the mid-1990s). The state has virtually disappeared as a direct largest shareholder of listed companies. Nevertheless, the state still remained among the key ultimate owners among the top 20 companies. Second, foreign investors have become the largest shareholders in 46% of the top 100 companies (up from 31% in the mid-1990s) and in 11.7% of listed companies (up from 6.25% in the mid-1990s).Third, there was a remarkable increase in ownership concentration in listed companies and the percentage of listed companies with dispersed ownership has declined. The destruction of large Bulgarian firms, proxied by their exit rate, was not coupled with an entry of newly established private firms into the top 100 companies. There was no sustainable development of the domestic largest shareholders. The chapter discusses potential determinants explaining the observed ownership changes.