‘The sale of an ailing bank to another financial institution can contribute to the restoration of long-term viability, if the purchaser is viable and capable of absorbing the transfer of the bank, and may help to restore market confidence. It may also contribute to the consolidation of the financial sector. To this end, the purchaser should demonstrate that the integrated entity will be viable. In the case of a sale, the requirements of viability, own contribution and limitations of distortions of competition also need to be respected.’

The sale of an ailing bank to another financial institution can contribute to the restoration of long-term viability, if the purchaser is viable and capable of absorbing the transfer of the bank, and may help to restore market confidence.

Furthermore, without prejudice to the merger control system that may be applicable, and while recognising that the sale of an aided bank to a competitor can both contribute to the restoration of long-term viability and result in increased consolidation of the financial sector, where such a sale would result prima facie in a significant impediment of effective competition, it should not be allowed unless the distortions of competition are addressed by appropriate remedies accompanying the aid.

‘The sale of an bank to another financial institution can contribute to the restoration of long-term viability, if the purchaser is viable and capable of absorbing the transfer of the ailing bank, and may help to restore market confidence. It may also contribute to the consolidation of the financial sector. To this end, the purchaser should demonstrate that the integrated entity will be viable. In the case of a sale, the requirements of viability, own contribution and limitations of distortions of competition also need to be respected.’

The sale of an bank to another financial institution can contribute to the restoration of long-term viability, if the purchaser is viable and capable of absorbing the transfer of the ailing bank, and may help to restore market confidence.

At Community level, the Commission has, in the past, adopted a number of decisions relating to restructuring aid (compatible under Article 87(3)(c) of the EC Treaty) to banks, on the basis of a comprehensive restructuring process which allowed the beneficiaries to regain their long-term viability without the aid unduly harming competitors.

OJ C 227, 27.9.2007, p. 20 ( de la Drôme), OJ C 228, 28.9.2007, p. 18 (Všestarská cibule), OJ C 232, 4.10.2007, p. 17 (Slovenská bryndza), OJ C 233, 5.10.2007, p. 10 (Ajo Morado de Las Pedroñeras), OJ C 236, 9.10.2007, p. 13 (Gamoneu or Gamonedo), OJ C 236, 9.10.2007, p. 18 (Alheira de Vinhais), OJ C 236, 9.10.2007, p. 10 (Presunto de Vinhais or Presunto Bísaro de Vinhais).

In accordance with the first subparagraph of Article 6(2) and pursuant to Article 17(2) of Regulation (EC) No 510/2006, France’s application to register the name ‘ de la Drôme’, the Czech Republic’s application to register the name ‘Všestarská cibule’, Slovakia’s application to register the name ‘Slovenská bryndza’, Spain’s applications to register the names ‘Ajo Morado de Las Pedroñeras’ and ‘Gamoneu’ or ‘Gamonedo’ and Portugal’s applications to register the names ‘Alheira de Vinhais’ and ‘Presunto de Vinhais’ or ‘Presunto Bísaro de Vinhais’ were published in the Official Journal of the European Union [2].

registering certain names in the Register of protected designations of origin and protected geographical indications ( de la Drôme (PGI), Všestarská cibule (PDO), Slovenská bryndza (PGI), Ajo Morado de Las Pedroñeras (PGI), Gamoneu or Gamonedo (PDO), Alheira de Vinhais (PGI), Presunto de Vinhais or Presunto Bísaro de Vinhais (PGI))

de la Drôme (PGI)

OJ C 85, 4.4.2008, p. 13 (San Simón da Costa), OJ C 87, 8.4.2008, p. 8 ( blanc de Lomagne), OJ C 91, 12.4.2008, p. 26 (Steirischer Kren).

Pursuant to the first subparagraph of Article 6(2) of Regulation (EC) No 510/2006 and in accordance with Article 17(2) thereof, Spain’s application to register the name ‘San Simón da Costa’, France’s application to register the name ‘ blanc de Lomagne’ and Austria’s application to register the name ‘Steirischer Kren’ were published in the Official Journal of the European Union [2].

blanc de Lomagne (IGP)

entering certain names in the Register of protected designations of origin and protected geographical indications (San Simón da Costa (PDO), blanc de Lomagne (PGI), Steirischer Kren (PGI))

entering a name in the register of protected designations of origin and protected geographical indications ( fumé d’Arleux (PGI))

fumé d’Arleux (PGI)

Pursuant to Article 6(2) of Regulation (EC) No 510/2006, France’s application to register the name ‘ fumé d’Arleux’ was published in the Official Journal of the European Union [3].

For example, the Commission has applied this reasoning in Case C 53/03, ABX [46], point 196 to 216, in which the Commission took into account costs supported by activities of the rest of the group which were in direct business link with the subsidiary, and for which the relation between the closure of the subsidiary and the effect on the rest of the group had been actually proven.

Finally, although Pusan Bank had no GOK ownership, it was nevertheless ordered by the FSS in 1999 to fire or replace its executives and to increase its paid-in capital by USD 86,2 million before the end of March 2000 [23], to ‘slash their manpower, the number of branches and organisations, while disposing of subsidiaries’ [24] and, in 2000, the FSS sanctioned its former and current officials for mismanagement [25]. Given this degree of GOK control over Pusan Bank, the bank's decision to participate in the syndicated loan cannot be considered to be a safe commercial benchmark.