Marfin needs to overcome Cyprus competition rules

The proposed mega merger between Marfin Popular Bank and Bank of Cyprus faces many hurdles and obstacles, one of which is that it may be seen violating competition rules and as is evident, create a new entity with a dominant market position in most economic aspects of Cyprus.

Competition Protection Commissioner Georgos Christofides said the body could block the deal if it was deemed to violate the conditions of open competition.

Christofides however, said that he will not comment on the aspects of the deal until the full merger and takeover bid document comes before him. Marfin has 7 days to submit the document to the Competition Commission after the official filing is made to the CSE.

The Competition Commission has then 1 month to respond, provided that all the aspects and effects of the proposed merger are included in the document.

“Even if there are some points missing or some of the explanations are not clear, the whole process could extend for another two or three months,” said Christofides, indicating that from the day Marfin submits the bid, the issue could drag on for at least four months and this is provided that all the aspects are addressed.