A PYMNTS Company

Revised Commerzbank restructuring plan approved because Eurohypo cannot be divested

By  |  April 1, 2012
Revised Commerzbank restructuring plan approved because Eurohypo cannot be divested

The European Commission has approved a modification to Commerzbank’s restructuring plan. The original plan was approved by the Commission in 2009. It called for the divestment of Eurohypo, Commerzbank’s largest subsidiary active in public finance and commercial real estate, by the end of 2014. However, the Commission was notified in September 2011 that Eurohypo could not be divested because of its large funding needs and sovereign exposure. As a substitute, German authorities proposed a winding down of Eurohypo on Commerzbank’s balance sheet, and to prolong the acquisition ban until March 2014. The acquisition ban applies to all companies and is to offset the continuation of Eurohypo’s commercial real estate business.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

     

    Full content: EC Press Release

     

    Related content: Banking Regulatory Reform: “Too Big to Fail” and What Still Needs to be Done (Abel Mateus, University College London)