The EU Commission clears an acquisition in the baking sector through a division of assets (Catalunya Banc / BBVA)
* Article published on StateAidHub: http://stateaidhub.eu, republished in e-Competitions with the courtesy of the author. The original title of this article appears below the e-Competitions title. Authors are welcome to write an alternative article on this case/text, provided they have no relationships with a party or related third party. Article will need e-Competitions Board approval before publication.
Privatisation by Splitting the Assets*
The sale of a public undertaking [privatisation] needs to be preceded by independent valuation and be carried out on the basis of a competitive procedure. Certain guarantees may be provided to prospective buyers, if they could increase the sale price. The break-up of an undertaking and the disposal of the different parts through separate sales should be shown to generate more revenue than a single sale.
Introduction
This article reviews Commission decision SA.39402 concerning the sale of Catalunya Banc to BBVA.[1] As a result of the financial crisis, Spain established in 2010 “Fondo de Reestructuración Ordenada Bancaria” [FROB] whose purpose was to provide public support for the consolidation of the Spanish banking sector.
To ensure that the
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