11 October 2018 – La Vanguardia
Today, the European Commission (EC) has given the green light for CaixaBank to sell 80% of its real estate business to the US fund Lone Star after verifying that it will not harm competition due to its “limited impact on the market structure”.
The EU Executive reported its approval of the operation, which was announced by CaixaBank on 28 June and which will involve the sale to Lone Star of a portfolio comprising the real estate assets available for sale as at 31 October 2017 and the real estate company Servihabitat.
The package is worth around €7 billion in its entirety.
CaixaBank is planning to close the sale at the end of this year or the beginning of next year and estimates that it will result in cost savings of €550 million over the next three years, between 2019 and 2021.
Moreover, it will allow it to clean up its balance sheet of foreclosed assets proceeding from the crisis and improve its returns, according to the bank.
The Competition Department of the European Commission analysed the operation using the simplified procedure for reviewing mergers, which is used for those deals that, a priori, will generate the fewest problems.
Original story: La Vanguardia
Translation: Carmel Drake