Danish guarantee scheme on bank merger liabilities approved under EU state aid rules
The European Commission has approved a DKK 50 billion (approximately €6.7 billion) Danish guarantee scheme on liabilities for merging banks in Denmark.
The scheme provides state guarantees on merger liabilities for any bank established in Denmark (including subsidiaries of foreign banks) if one of the merging banks is, or is likely to become, distressed. However, the merged entity must be found viable by the Danish Financial Supervisory Authority, and if its total balance sheet exceeds €3 billion, the European Commission will be notified for state aid scrutiny.
The Commission has found the scheme to be compatible with EU state aid rules, given the market failures that small Danish banks encounter in funding mergers.
Source: European Commission
Related content: Identifying, Challenging, and Assigning Political Responsibility for State Regulation Restricting Competition (Maureen Ohlhausen, Wilkinson Barker Knauer)
Featured News
Justice Department Moves to End NCAA Transfer Rule
May 30, 2024 by
CPI
Kenya’s Competition Authority Proposes Tougher Regulations on Big Tech
May 30, 2024 by
CPI
KKR Secures EU Antitrust Approval for $24 Billion Acquisition of Telecom Italia’s Fixed-Line Network
May 30, 2024 by
CPI
European Court Sides with Tech Giants in Italian Regulatory Dispute
May 30, 2024 by
CPI
US Steel and Nippon Steel Secure International Approvals for $14.9B Merger
May 30, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Merger Guidelines Retrospective
May 21, 2024 by
CPI
Mergers of Complements
May 21, 2024 by
CPI
Personality Traits, Private Equity, and Merger Analysis
May 21, 2024 by
CPI
The 2023 Merger Guidelines: Lessons in the Importance of Incipiency, Modern Economics, and Monopsony
May 21, 2024 by
CPI
The 2023 Merger Guidelines: Sharpening Merger Analysis
May 21, 2024 by
CPI