BANCA INTESA/SANPAOLO IMI
PRESS RELEASE
PRESS RELEASE
ANTITRUST LAUNCHES INQUIRY INTO SANPAOLO IMI-BANCA INTESA MERGER
Risk of restrictions on competition in a number of markets involved in the operation
The Italian Competition Authority, at its meeting on 19 October 2006, decided to launch an inquiry into the takeover of SanPaolo IMI S.p.A. by Banca Intesa S.p.A. In the Authority's view, there are market areas in which this merger may lead to a restriction of competition.
The merger will create the largest banking group in Italy and one of the largest in the euro zone, with a market capitalization of over 65 billion euros, which will be able to count not only on a significantly increased distribution network but also on a vertically integrated structure in numerous markets in the activities upstream of production-management. The operation will mean an extension of the range and type of services offered to the clientele (from strictly banking services to portfolio management to insurance). These are factors which, taken together, may create or strengthen a dominant position.
Specifically, the new banking group may have significant market strength in retail banking (deposits and investments), in consumer credit, in leasing, in factoring, in credit and debit cards, in mutual funds and wealth management (GPM and GPF), in superannuation and investment trusts, as well as in life assurance (categories I, III and V).
The potentially restrictive effects on competition must also be viewed in the light of the relationships between the new merged entity and the Generali Group on the one hand and Crédit Agricole on the other.
The inquiry must be completed within the next 45 days, so long as ISVAP's opinion is provided within the 30 days prescribed.
Rome, 19 October 2006