Brussels, 08/04/2014 (Agence Europe) - In a ruling returned on Tuesday 8 April (case T-319/11), the General Court of the EU confirmed the prohibition handed down to ABN Amro on making acquisitions. This prohibition was imposed by the Commission in 2011 in the framework of the recapitalisation of ABN Amro by the Dutch state due to the financial crisis.
Due to the crisis, the Dutch state decided to merge FBN and ABN Amro N to create a new legal entity, ABN Amro. These acquisitions, as well as the recapitalisation operations carried out by the Dutch state in favour of ABN Amro, were the subject of a Commission procedure. On 5 April 2011, the Commission concluded that ABN Amro had received state aid of between €4.2 billion and €5.45 billion and liquidity aid amounting to €71.7 billion (the Commission recognised the compatibility of the restructuring plans). The decision included an acquisition ban for a period of five years, if the Dutch state continued to own more than 50% of ABN Amro after three years. ABN Amro appealed, on the grounds that the aid granted to it does not bring about a competition distortion.
The General Court upheld the Commission's analysis: any financial acquisition using state aid which is not strictly necessary to assure the beneficiary company's return to viability “violates the principle whereby aid should be limited to the absolute minimum”, said the General Court. It concludes that under the specific circumstances, the prohibition on making acquisitions in the form of stakeholdings of 5% or more in businesses in any given sector “complies with the principles laid down in the various communications of the Commission, particularly the communication on restructurings”.
The General Court takes the view that the same applies to the length of the prohibition, which must therefore remain in force for at least three years starting from the date on which the challenged decision was adopted or until the share held by the Dutch state falls below the 50% mark. However, it will cease to apply no later than five years after the date on which the contested decision was adopted. (LC)