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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.

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    Full content: EC Press Release

     

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