Europe's biggest cross-border financial services deal in recent years was given a significant boost over the weekend when Competition Commissioner Mr Mario Monti in effect confirmed that EU regulators would approve the £8.75 billion (€12.9 billion) bid by Santander Central Hispano, the Spanish bank, for Britain's Abbey National.
Mr Monti said the bid was a sign of progress towards the EU's elusive ambition to create a single market in financial services.
"At first glance, it is a contribution to the objective of the Commission of having a more integrated financial services market," Mr Monti said. The commissioner is widely expected to propose approval for the bid, which will be ruled on by the Commission by September 17th.
However, his comments angered HBOS, Britain's fourth largest bank, which has complained about the SCH bid on competition grounds.
HBOS is also considering making a bid for Abbey and is expected to decide this week about whether to proceed.
HBOS yesterday said: "If Mr Monti has made this remark, it is a worrying development.
"The Commission has yet to make any decision about the proposed deal by Santander for Abbey."
The bank, created through the 2001 combination of Halifax and Bank of Scotland, said Mr Monti's comments were "akin to a judge commenting on a case before it had been heard in court". - (Financial Times Service)
