EC Approves Four Spanish Banks Restructuring, BNP Exits Egypt

Arthi Gupta
20 Dec, 2012
New York City

The European Commission approved restructuring plans of four Spanish banks. BNP plans to sell its entire 95% stake in BNP Paribas Egypt S.A.E. to Emirates NBD for $500 million.

[R]2:10 PM Frankfurt – The European Commission approved restructuring plans of four Spanish banks. BNP plans to sell its entire 95% stake in BNP Paribas Egypt S.A.E. to Emirates NBD for $500 million.[/R]

European markets traded mixed with the indexes in Paris and London traded higher and in Frankfurt eased. Ericsson was in focus after leading the decliners in Stockholm trading.

EC Approves Spanish Banks Restructuring

The European Commission concluded that the restructuring plans of four Spanish banks, Liberbank, Caja3, Banco Mare Nostrum and Banco CEISS, are in line with EU state aid rules.

The proposed restructuring measures will ensure that Liberbank, BMN and Banco CEISS return to long-term viability. Caja3 will be fully integrated into Ibercaja with the plan to return to viability within the five-year restructuring period.

In Paris trading, the CAC-40 Index gained 3.64 or 0.1% to 3,669.15 and in Frankfurt the DAX Index edged higher 6.20 or 0.1% to 7,675.04.

The yields on Spain’s benchmark were at 5.25%. Italian 10-year yields rose one basis point to 4.41%.

PSA Peugeot, GM Ink Agreements

PSA Peugeot Citroen and General Motors confirmed the signing of major agreements in the execution of their global strategic alliance related to three of the initial vehicle projects as well as to the purchasing joint venture.

BNP Plans to Sell Egyptian Business

BNP Paribas S.A. will sell its entire 95.2% stake in BNP Paribas Egypt S.A.E. to Emirates NBD, subject to Central Bank of Egypt and other regulatory approvals in Egypt and the United Arab Emirates.

The total consideration for the transaction is $500 million, representing 1.6 times the book value as of September.