Bulgaria's competition watchdog authorised on Thursday the sale of German power utility EON's Bulgarian unit to Czech company Energo-Pro, a statement on its website said.

Energo-Pro controls a total of eight companies for electricity production, distribution and trade in the Czech republic, Turkey, Armenia, Georgia and Bulgaria, the watchdog said.

But it found the acquisition of EON's 67-percent stake in the electricity distributor that covers the whole of northeastern Bulgaria will not endanger competition.

EON acquired its stake in the utility after the government offered it for privatisation in 2004.

But it decided last December to exit Bulgaria and agreed to sell its business here to Energo-Pro for around 133 million euros ($172 million).

Bulgaria's government is expected to float its remaining 33-percent stake on the stock exchange this year.