Brussels, 13/07/2001 (Agence Europe) - On 12 July, the European Commission initiated an in-depth investigation into the planned merger between ForeningsSparbanken AB (FSB) and Skandinaviska Enskilda Banken AB (SEB). The operation would lead to the emergence of the largest financial establishment in Sweden. The initial investigation revealed that it would lead to the creation or strengthening of dominant positions on several banking markets in Sweden, notably that of services offered to households and SMEs. The Commission has four months to investigate and take a final decision.
SEB and FSB have agreed to proceed with the complete merger of their activities. Although both banks are Swedish, one of them (SEB) makes more than a third of its revenues abroad, and, as the Swedish government has not requested referral of the deal, the Commission is competent to assess its effect on the competitive structure of the market and particularly on consumers.
The Commission's initial investigation showed that the main impact of the merger would be felt in the market for banking services for households and SMEs in Sweden, where the merged entity would control, either directly or indirectly, around half the distribution network. The in-depth investigation will determine whether the merger could give rise to the creation or strengthening of dominant positions on a certain number of markets, notably those of savings (deposits, mutual funds), card payments (card issuing, card acquiring), automatic till machine transactions and money lending.