The European Commission said it had approved restructuring plans for Dutch state-owned bank ABN Amro, subject to a ban on acquisitions and a condition that it achieves certain margins in private banking.
The Dutch state nationalised the Dutch activities of ABN Amro and Fortis Bank Nederland in 2008 after the dramatic failure of a three-pronged hostile takeover of ABN Amro by Royal Bank of Scotland, Fortis and Banco Santander.
"The conditions set by the Commission to accompany the restructuring plan shall effectively ensure that the aid is (to) be used to make the ABN Amro Group viable in the long term and prevent that the aid finances competition-distorting initiatives," EU Competition Commissioner Joaquin Almunia said in a statement.
Tom Muller, analyst at Dutch private bank Theodoor Gilissen, said such conditions were to be expected, given ABN Amro's size and state ownership.
"One of the largest banks is owned by the government, so they have to ensure a level playing field," Mr Muller said.
ABN Amro, which received capital and liquidity support from the state, is being readied for a stock market listing in 2014.
The commission also said its investigation had found that the recapitalisation measures taken between October 2008 and January 2010 represented aid of between €4.2 billion and €5.45 billion.
"Certain measures, such as the purchase price of €12.8 billion paid by the Dutch State to Fortis Bank SA/NV for acquiring the two entities, while they represent a cost for the Dutch state, were not considered as representing state aid to the two entities since the latter did not receive the corresponding money," the commission said in its statement.
"The conditions set by the Commission to accompany the restructuring plan shall effectively ensure that the aid is (to) be used to make the ABN Amro Group viable in the long term and prevent that the aid finances competition-distorting initiatives," EU Competition Commissioner Joaquin Almunia said in a statement.
Tom Muller, analyst at Dutch private bank Theodoor Gilissen, said such conditions were to be expected, given ABN Amro's size and state ownership.
"One of the largest banks is owned by the government, so they have to ensure a level playing field," Mr Muller said.
ABN Amro, which received capital and liquidity support from the state, is being readied for a stock market listing in 2014.
The commission also said its investigation had found that the recapitalisation measures taken between October 2008 and January 2010 represented aid of between €4.2 billion and €5.45 billion.
"Certain measures, such as the purchase price of €12.8 billion paid by the Dutch State to Fortis Bank SA/NV for acquiring the two entities, while they represent a cost for the Dutch state, were not considered as representing state aid to the two entities since the latter did not receive the corresponding money," the commission said in its statement.
