Commission approves restructuring plan for Vestjysk Bank A/S

Background and further information:

The European Commission temporarily approved in April 2012 up to DKK 8,941 million (€1.2 billion) state support for Vestjysk Bank as rescue aid under the state aid rules applicable at the time (the 2008 Banking Communication), pending the submission of suitable restructuring measures. As a result of this intervention, the Danish State became the majority shareholder (81.47%) in Vestjysk Bank.

In December 2015, the Commission opened a formal investigation to verify whether the restructuring plan submitted by Denmark would ensure the bank's return to long-term viability. At the same time, Denmark launched a sales process in order to divest the State's entire stake.

The Commission found that the sales process was conducted fairly and on a transparent basis and that Denmark does not grant any further aid to the bak through the sale. It also concluded that the restructuring plan presented by Denmark in cooperation with the Danish private consortium ensures Vestjysk Bank's long-term viability and addresses potential distortions to competition.

The European Commission decided on 18 July 2017 to approve a restructuring plan for Denmark's Vestjysk Bank, ensuring its long-term viability without any new aid.

The Commission also gave final approval to past aid, which had been granted and temporarily approved in April 2012.

• Primary Source

Reuters, 18.07.17: Danish bank Vestjysk wins EU okay for overhaul, state aid http://www.reuters.com/article/eu-vestjysk-bank-restructuring-idUSL5N1K94IA

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