Brussels, 03/04/2000 (Agence Europe) - The European Commission has authorised the Belgian banking services company KBC to take over sole control of the Dutch and Belgian business activities of KBC-Petercam Derviatives (KBCPD), a company specialised in the provision of derivatives. These activities have been managed to date by two joint venture companies previously controlled jointly by KBC and the Petercam-Group.
European competition services have noted that the only market where there is horizontal overlapping of KBC and KBC-Petercam activities is that for tailor-made provision of equity linked options structures traded over the counter, but they felt that the merger would not create an aggregate market share above 15% in the European Economic Area. Concerning the vertical relationship between KBC and KBCPD, KBC uses equity linked derivatives products on KBCPD shares to cover its risks as an issuer of index funds with protection of capital. The merger, however, should not prevent other issuers from providing this kind of coverage instrument, considers the Commission.