Competition authorities give go ahead for Spanish banks deal

Competition authorities give go ahead for Santander Popular deal
GREEN LIGHT: The European Commission said that ‘the transaction would not raise competition concerns’ Photo credit

EU competition authorities gave the formal green light on Tuesday for the sale of Spanish lender Banco Popular to Spain’s biggest bank Santander, the first major test of Europe’s new system for dealing with failing banks.

The European Commission, which oversees competition issues, said that investigators concluded ‘the transaction would not raise competition concerns’ in Europe’s economic area.

It said their combined market share would be limited and that strong competitors remain in all markets affected by the move.

Santander acquired Banco Popular in an overnight auction in June for €1 after the European Central Bank warned that Spain’s No. 6 bank by assets was on the verge of collapse – a deal showcasing Europe’s new system to rescue failing banks without burdening taxpayers or markets.

The Spanish government said that Popular would not have been able to remain open without the buyout, adding that it had both preserved people’s savings and avoided the expenditure of any public funds in keeping the bank afloat.

© No part of this web site may be reproduced without written permission from the publishers. All rights reserved. Todos los derechos reservados.


Please enter your comment!
Please enter your name here

We welcome comments from readers on our website and across our social networks. We invite you to discuss issues and share your views and we encourage robust debate and criticism provided it is civil.

However we reserve the right to reject or edit comments that:

• Contain offensive language
• Include personal attacks of any kind
• Are likely to offend or target any ethnic, racial, nationality or religious group
• Are homophobic, transphobic, sexist, offensive or obscene
• Contain spam or include links to other sites
• Are clearly off topic
• Impersonate an individual or organisation, are fraudulent, defamatory of any person, threatening or invasive of another’s privacy or otherwise illegal
• Are trolling or threatening
• Promote, advertise or solicit the sale of any goods or services

You grant us a non-exclusive, royalty-free, perpetual, worldwide licence to republish any material you submit to us, without limitation, in any format.