BANCA INTESA/BANCA COMMERCIALE ITALIANA
PRESS RELEASE
PRESS RELEASE
The Competition Authority and the Bank of Italy have completed their investigation of the merger between Banca Intesa and Comit
The Competition Authority and the Bank of Italy have completed their investigations that began on 13 October and 22 October 1999, respectively, into the acquisition of the control of Comit by Banca Intesa, and have authorized the takeover according to the amended conditions following specific undertakings on the part of the Intesa Group.
The investigation began in view of the important effects that the takeover would be likely to have on the credit markets and in certain financial markets.
Following a very careful analysis from the point of view of competition, even though the merger of the two groups will strengthen the position of Intesa nationwide its would not create or strengthen a dominant position on the relevant markets because other major groups with substantial market shares would still put up considerable competition against it.
However, the investigation did find that there more critical issues were raised on the savings markets, and on the markets for the distribution of funds and asset management, because the operation would have enormous effects in certain major geographical areas of Italy. In view of these issues, the Intesa Group proposed that the two companies should introduce structural measures to reduce the number of branches in the geographical areas most seriously affected, in order to substantially reduce or completely eliminate any territorial overlapping as a result of the operation.
The measures proposed, affecting a total of 45 branch banks to be completed within one year after the end of the investigation, were considered by both the Authorities, as their reports indicate, to be likely to substantially reduce the effects of the takeover in the important areas of Italy most directly affected by the operation. In practice, they would curb the external growth of the Intesa Group in those areas following the operation and would resolve the critical issues relating to the collections of savings, and the distribution of funds and asset management.
Rome, 2 December 1999