The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Bayerische Hypo- und Vereinsbank AG (“HVB”) by UniCredito Italiano S.p.A. (“UniCredito”), both of which offer a wide range of financial services in several European countries. After examining the operation carefully, especially in the Member States where both merging parties have significant activities, the Commission has concluded that the transaction would not significantly impede effective competition in the EEA or any substantial part of it.
Competition Commissioner Neelie Kroes stated that “We examined the merger carefully in countries such as Poland where both parties have significant activities. I am confident that consumers in those countries will not suffer due to any decreased level of competition in the, still national, markets. The clearance of this merger therefore paves the way for the creation of a truly European bank and so contribute to establishing a single European market for retail and corporate banking.”
Both UniCredito, based in Italy, and HVB, based in Germany, are banks offering a full range of banking and financial services to retail and corporate customers in several European countries. Even though each bank generates the largest part of its income in its home country, their activities overlap significantly in some EU countries, in particular Poland, the Czech Republic and Slovakia.
The Commission’s examination of the deal in all relevant banking and financial services markets showed that the combined position of the parties would not lead to competition concerns and that in all affected national markets the combined firm will continue to face a number of strong competitors.
The Commission closely investigated the Polish financial services markets where the merger will create the largest universal bank in terms of assets and the second largest in terms of administered current accounts. However, even though the position of the new market leader would be significant in some areas such as mutual funds distribution and management, there remain a number of other banks, many of them belonging to well-known and respected international banking groups, which will be able to compete effectively in all segments of the rapidly developing banking sector in Poland.
