03 April 2012

Commission opens in-depth investigation into sale of Dexia BIL

Given that the proposed sale is the result of exclusive negotiations with a private investor, and that the EC does not have enough information on the valuation of the carved-out businesses, the EC has opened an in-depth investigation to assess whether the price of the transaction is market conform.

The European Commission has opened an in-depth investigation to ascertain that the conditions of the sale of Dexia BIL is conducted on market conditions and therefore does not contain any state aid element. The opening of an in-depth investigation gives interested third parties the possibility to submit comments on the sale and increases legal certainty.

On 23 March 2012, Luxembourg notified the sale of Dexia BIL (Dexia Banque Internationale à Luxembourg) to the Commission. The sold business mainly comprises Dexia BIL's retail and private banking business, whereas other businesses are carved out from the transaction. Under the notified transaction a private investor would acquire 90 per cent of the sold business and Luxembourg the remaining 10 per cent under the same terms and conditions. In this regard, Dexia announced on 6 October 2011 that the bank had entered into exclusive negotiations with a private investor.

Background

Dexia BIL is part of the Dexia group, which benefited from significant state support from France, Belgium and Luxembourg, in 2008/2009, in the form of a recapitalisation, guarantees on funding, and a guarantee on impaired assets. That support was approved by the Commission in February 2010 in return for a restructuring plan to be concluded by the end of 2014. 

The restructuring plan enabled Dexia SA to enhance the stability of its financing sources and reduce its leverage and its portfolio of non-strategic assets. However, the bank has fallen behind with the implementation of this plan and the imbalance in its financing sources has worsened again since last summer.

Press release

12.5.12: Invitation to submit comments pursuant to Article 108(2) of the TFEU

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