Press Release: State aid: Commission approves split-up of WestLB

The European Commission has approved under EU state aid rules the split-up of Westdeutsche Landesbank (WestLB), which will lead to sale and eventual winding down of its banking activities.

According to the restructuring plan, submitted by the German government with the agreement of the shareholders, the so-called Verbundbank activities will be carved out in order to accommodate the Verbundbank. On 30 June 2012, all assets and liabilities not carved out to the Verbundbank or sold will be transferred to the EAA. After 30 June 2012, WestLB will not engage in new banking business and will be transformed into a servicing platform including a run-down vehicle that holds legacy positions transferred to or hedged by EAA. A reduced number of employees will continue in the asset management and servicing company.