Commission clears state aid to rescue and restructure Fortis Bank

03 December 2008

The Commission approved the package granted to Fortis Bank and Fortis Bank Luxemburg. The sale to BNP Paribas does not involve state aid in favour of BNP Paribas, the Commission finds.

The Commission approved the package granted to Fortis Bank and Fortis Bank Luxemburg following the crisis on the financial markets. To limit distortions of competition, Fortis Bank has, in particular, sold its Dutch operations, which accounted for 40% of its size, and thereafter was sold to BNP Paribas.

 

Fortis Bank was until recently one of Europe's largest banks. On 28 September Belgium, Luxembourg and The Netherlands announced a capital injection in exchange of a 49% stake in the bank. As this failed to restore market confidence in the bank and the liquidity crisis worsened, the Belgian authorities put in place on 29 September a special liquidity assistance amounting to tens of billions of euros. On 3 October, the Dutch operations of Fortis Bank, including ABN AMRO, were sold to the Dutch State. The remainder was bought by the Belgian state, which immediately sold 75 % to the French bank BNP Paribas. Through this sale, BNP Paribas will also control Fortis Bank Luxembourg.

 

The Commission also found that the sale of 75 % of Fortis bank and 16 % of Fortis Bank Luxembourg to BNP Paribas does not involve state aid in favour of BNP Paribas, as the latter paid the market price for these acquisitions.

 

Press release

 

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