CONDITIONAL GO-AHEAD FOR TAKEOVER OF CASSA DI RISPARMIO DI FIRENZE BY INTESA SANPAOLO
PRESS RELEASE
PRESS RELEASE
ANTITRUST AUTHORITY GIVES CONDITIONAL GO-AHEAD FOR INTESA SANPAOLO'S TAKEOVER OF CASSA DI RISPARMIO FIRENZE
Twenty-nine branches in the Provinces of La Spezia, Terni and Pistoia must be sold to an independent third party. The Group is to dissolve its joint venture with Credit Agricole, divesting its interest in Agos.
Conditional authorization has been given by the Antitrust Authority for the acquisition of full control of Cassa di Risparmio Firenze by Intesa Sanpaolo. The Italian Competition Authority, at its meeting on 17 January 2007, decided to accept the commitments presented by the group and to make them binding.
Specifically, Intesa Sanpaolo, within a short space of time, must sell 29 branches in the Provinces of La Spezia (15), Terni (11) and Pistoia (3) by way of transparent non-discriminatory procedures and in accordance with competitive mechanisms to one or more independent third parties who are not shareholders in the new bank and who are able to bring effective competitive pressure to bear. This measure is intended to eliminate any anti-competitive effects in the provinces where the impact of the merger would otherwise be most significant. The sale of the branches will make a difference not only in deposit-taking and lending but also in offerings of financial services, wealth management and insurance where the merger could also have restricted competition.
Moreover, Intesa Sanpaolo must divest its entire shareholding in the Agos finance company within a fixed time limit in such a way as to dissolve the relevant shareholder pacts and, amongst other things, bring about the immediate resignations of those of Agos's directors who were designated by Intesa Sanpaolo S.p.A.
This measure will ensure the takeover does not result in the creation of a dominant position in consumer credit in which otherwise the new bank would have controlled no fewer than three companies: Agos, Findomestic and Neos, two of which are of the first order. The winding up of the joint venture with Crédit Agricole in Agos is to take place in the very near future: the relevant steps are already at an advanced stage. In evaluating this commitment it must be remembered that the company which will be buying 49% of Agos, Crédit Agricole, due to the measures relating to the Sanpaolo - Banca Intesa merger, should over time establish its independence from the new bank and thus be able to exercise real competitive pressure in the markets involved, including consumer credit.
Intesa Sanpaolo must also furnish the Authority with an immediate and sufficiently detailed report as to changes in the governance of Findomestic as well as the result of arbitration concerning the exercise of put and call options regarding this company by BNP Paribas on the one hand and by Cassa di Risparmio Firenze on the other.
Within 90 days Intesa Sanpaolo must present the Authority with a first report on the execution of the above measures.
Rome, 17 January 2008