The European Commission on Monday approved a guarantee by two German states for HSH Nordbank that will ultimately facilitate a sale of the state-owned bank which had to be rescued during the financial crisis.
The Commission found that a $3.44 billion increase in a guarantee ceiling provided by the regional states of Hamburg and Schleswig-Holstein was in line with EU state aid rules.
In 2013, the Commission had temporarily approved the increase in the guarantee to 10 billion euros from 7 billion euros but began an investigation to assess whether the public-sector bank could restore its viability.
The Commision said its finding was based on new commitments by Germany to split the bank into two parts and to sell the operational business without state aid.
“The split and sale solution, as I already outlined in agreement with the German authorities in October, created an opportunity to sell an important part of the bank,” EU Competition Commissioner Margrethe Vestager said in a statement.
“It paves the way for a privatized, viable business to emerge from the sale process,” she continued.
HSH Nordbank, majority-owned by Schleswig-Holstein and Hamburg, turned to its owners after risky assets turned sour in 2008 and the shipping lender got hit by the slump in global trade in the wake of the financial crisis.
Full Content: European Commission
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
DOJ and FTC Introduce Website for Reporting Anti-Competitive Healthcare Practices
Apr 18, 2024 by
CPI
US Congress Advances Legislation to Compel TikTok Sale
Apr 18, 2024 by
CPI
UK Financial Sector Advocates Enhanced Regulatory Accountability
Apr 18, 2024 by
CPI
Google and All 50 States Defend $700 Million Consumer Settlement
Apr 18, 2024 by
CPI
Colorado Enacts First Law to Protect Consumer Brainwave Data
Apr 18, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI