Brussels, 26/01/2007 (Agence Europe) - MEPs on the European Parliament's Economic and Monetary Affairs Committee adopted a report on Tuesday 24 January by Wolf Klinz (EPP-ED, Austria) on the draft directive amending criteria and proceedings for monitoring mergers and acquisitions in banking, insurance and the securities industry (see EUROPE 9263). The Socialist group abstained from voting on the final version of the report as amended by MEPs, and will be retabling some of the rejected amendments. The EP and Council will be stepping up their efforts to reach agreement in the first reading in March 2007.
Under a compromise amendment, competent national authorities will be allowed no more than 47 'working days', starting from the date when they receive notification, to submit their decision on planned mergers and acquisitions (the European Commission had initially proposed 30 days). In the event where further information is requested by the national authorities, the 47 day deadline can be extended by 10 days. In the event where acquisitions proceedings are launched by financial institutions based outside the EU, the deadline would be increased from 47 to 77 working days.
The MEPs agreed with the list of five criteria to be used by competent authorities when deciding on mergers and acquisitions. Further details were added to two criteria, one about the acquiring company's reputation and the other about the acquiring company's ability to respect EU financial services legislation. The European Commission suggested laying down an exhaustive list of five criteria for assessing merger and acquisition authorisation requests - the purchaser's reputation, the experience of the managers of the future company, the purchaser's financial solidity, the purchaser's respect of EU financial services legislation, and suspected money laundering or funding of terrorist activities.
Quizzed by Europe about the Socialist group's abstention from the final vote, Ieke van den Burg (PES, the Netherlands) mentioned two reasons, one concerning the procedure whereby last minute changes were made to some of the compromise amendments, and the other concerning 'content' following the rejection of several amendments tabled by the Socialists. The PES is opposing a compromise amendment, for example, whereby a potential purchaser acquiring 20% of the total shares of the target financial establishment would be exempt from certain notification obligations. The PES argues that a 12% upper limit would be acceptable here in order to maintain high standards for investment funds or alternative funds from outside the EU. (mb)