EU clears Banco Santander takeover of British bank
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Tue, 16 Sep 2008 11:09
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Brussels - The European Commission on Tuesday cleared the proposed takeover of Alliance & Leicester (A&L), a British bank, by Spain's Banco Santander after concluding that the deal would not harm consumers. The decision in Brussels came just hours before A&L shareholders were due to meet on the proposed 1.3-billion-pound (2.3 billion dollars) deal, and while stock markets around the world were still reeling from the collapse of US investment giant Lehman Brothers. Banco Santander's acquisition of A&L would combine the sixth and eight largest banks in Britain, with a total of nearly 960 branches. However, officials in Brussels concluded that the deal would not impede competition, since none of the combined activities would enjoy market shares of more than 15 per cent and would still face strong competition from the likes of Barclays and RBS/NatWest. "After examination, the commission concluded that the proposed operation would not significantly impede effective competition in the European Economic Area," the EU executive arm said in a statement.
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