Aug82017

Mergers: Commission approves acquisition of Banco Popular Español S.A. by Banco Santander

EU

Banco Santander and Banco Popular universal banks, providing commercial, retail investment and wholesale banking services as well as insurance services in Spain and Portugal. The Commission investigated the transaction’s impact on the markets for retail and corporate banking, leasing, factoring and the provision of ATM services in the Portuguese and Spanish national and regional markets.

Its investigation concluded that the transaction would not raise competition concerns. The parties’ combined market shares are generally limited (below 25%) and strong competitors will remain in all affected markets.

Today’s decision is the final step by the Commission clearing the acquisition. It follows the Commission’s approval on 7 June 2017 of the resolution scheme of Banco Popular under EU bank recovery and resolution rules, which was based on a proposed resolution scheme by the Single Resolution Board (SRB).

Companies and products

Banco Santander is the parent company of an international group of banking and financial companies, operating mainly in Spain, other European countries including Portugal and the United Kingdom, Latin America and the United States.

Banco Popular is a Spanish financial entity listed on the Madrid, Barcelona, Bilbao and Valencia stock exchanges.), operating mainly in Spain and Portugal. The resolution of Banco Popular was approved under EU bank recovery and resolution rules. It involved the sale of Banco Popular to Banco Santander.

Background

On 6 June 2017, the European Central Bank decided that Banco Popular was “failing or likely to fail” in accordance with Article 18(1) of the Single Resolution Mechanism set out in Regulation (EU) No 806/2014.

On 7 June 2017 the Commission approved, in line with the Single Resolution Mechanism Regulation, the resolution scheme of Banco Popular, based on the proposal by the Single Resolution Board. Following the adoption of the resolution scheme, the entire business of Banco Popular and its subsidiaries were transferred to Banco Santander as of 7 June 2017. The customers of Banco Popular continued to be served with no disruption to the economy. All depositors continued to have uninterrupted access to the full amount of their deposits.

On the same day the Commission also adopted a decision based on Article 7(3) of the EU Merger Regulation granting the derogation from the standstill obligation, subject to certain conditions. Under this decision, Banco Santander could take certain measures to the extent necessary for Banco Popular’s financial stability, pending the Commission’s approval of its acquisition of Banco Popular under EU merger rules. The compliance with these conditions has been monitored by a Monitoring Trustee.

Merger control rules and procedures

The transaction was notified to the Commission on 14 July 2017.

The Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the Merger Regulation) and to prevent concentrations that would significantly impede effective competition in the EEA or any substantial part of it.

The vast majority of mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has a total of 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II).

A non-confidential version of today’s decision will be available on the Commission’s competition website, in the public case register under the case number M.8553.

Aug82017

Venezuelan crisis requires political solution, says UN, urging Government and opposition to relaunch talks

United Nations

8 August 2017 – Concerned that recent developments in Venezuela could lead to further escalation of tensions and hamper a peaceful solution to the crisis, United Nations Secretary-General António Guterres again today urged the Government and the opposition to relaunch negotiations for the benefit of the Venezuelan people.

A statement from Mr. Guterres’ spokesman said the UN chief is closely following events in the country and is convinced the crisis cannot be solved through the imposition of unilateral measures, but requires a political solution based on dialogue and compromise.

&#8220At this critical time,&#8221 the Secretary-General urged the Venezuelan Government and the opposition to relaunch negotiations for the benefit of the country’s people, said the statement, adding that Mr. Guterres is strongly supporting the ongoing efforts of the international facilitators and regional actors who are seeking to contribute to this end.

The Secretary-General and other top UN officials have been calling for calm amid the escalating political and economic crisis in Venezuela when mass street demonstrations began in the country in April.

In the months that followed, clashes erupted between security forces and protestors opposing elections for the so-called Constituent Assembly. According to media reports, President Nicolás Maduro has since declared victory in elections for a Constituent Assembly convened by him. The new body could replace the current legislative body, the National Assembly.

The UN High Commissioner for Human Rights, Zeid Ra’ad Al Hussein, today warned that since the wave of demonstrations began in April, there has been a clear pattern of excessive force used against protesters.

&#8220Several thousand people have been arbitrarily detained, many reportedly subjected to ill-treatment and even torture, while several hundred have been brought before military rather than civilian courts. And these patterns show no signs of abating,&#8221 said the High Commissioner in a statement from his spokesperson.

Responsibility for violations lies at ‘highest levels of Government’ &#8211 UN human rights chief

In the absence of responses from the Venezuelan authorities to requests for access, the High Commissioner deployed a team of human rights officers to conduct remote monitoring of the situation in the country from 6 June to 31 July, including from Panama.

The team conducted some 135 interviews, including with victims and their families, witnesses, first responders and the Attorney-General’s Office &#8211 and also received written information from the Ombudsperson’s Office.

Witnesses told of security forces firing tear gas canisters at short range; buckshot marbles and nuts and bolts were also discharged as ammunition at anti-Government protestors without warning; and deadly force was used against demonstrators as well.

&#8220These violations have occurred amid the breakdown of the rule of law in Venezuela, with constant attacks by the Government against the National Assembly and the Attorney-General’s Office,&#8221 Mr. Zeid continued. &#8220The responsibility for the human rights violations we are recording lies at the highest levels of Government.&#8221　

The team’s findings also indicate patterns of other rights violations, including violent house raids, torture and ill-treatment of detainees in connection with protests.

Witness accounts suggest that the National Guard, National Police and local police forces have systematically used disproportionate force to instil fear, crush dissent and prevent demonstrators from assembling with rare condemnation from Government authorities.　

Without official data, estimates suggest that more than 5,051 people have been arbitrarily detained between 1 April and 31 July, when mass demonstrations, began with some 1,000 reportedly still detained.

Several cases reviewed by the UN rights office revealed credible reports of cruel, inhuman or degrading treatment by security forces of detainees, some amounting to torture. Tactics included electric shocks, long periods of suspending detainees by their wrists, suffocation with gas and threats of killings. There were also sexual violence threats against detainees or their families. 　

&#8220I call on all parties to work towards a solution to the rapidly worsening tensions in the country, to renounce the use of violence and to take steps towards meaningful political dialogue,&#8221 concluded Mr. Zeid.