22/09/2010 (Agence Europe) - Commissioner for Competition Joaquín Almunia has responded on behalf of the Commission to the announcement made on 20 September by the German authorities regarding a possible merger between the regional banks of BayernLB and WestLB. The commissioner indicated that such a merger would not necessarily re-establish the long-term viability of the two banks, which are currently in the process of restructuring. The commissioner noted that with regard to the two banks, the Commission had begun formal investigation procedures into significant amounts of aid received since the beginning of the crisis and the two banks' restructuring plans. In this connection, WestLB has so far obtained risk protection to the tune of €5 billion, as well as an injection of capital worth €3 billion. The shares rescue operation involving additional aid is currently being assessed. BayernLB obtained capital support of €10 billion, in addition to risk protection worth €4.8 billion. The investigation into this company is expected to be extended, owing to the financial backing it received from the Austrian state for its Hypo Group Alpe Adria subsidiary. (F.G./transl.fl)