Europe

BaFin blesses takeover

Germany's Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) has approved the planned merger between German bank Bayerische Hypo-und Vereinsbank AG (HVB) and Italian UniCredito Italiano SpA (UniCredit). BaFin's approval has significant implications for German reinsurer Munich Re which has an 18.3% stake in HVB. Banca d’Italia, Italy's banking supervisory authority, had earlier approved the merger of the companies. Any foreign company taking a stake in a German financial services company must inform BaFin and the Deutsche Bundesbank. Under EU law such a deal can only be stopped if BaFin perceives the potential buyer not to be trustworthy or that the buyer lacks the capacity to adequately manage or capitalise the company. In Italy, banks require the permission of Banca d’Italia if they wish to acquire another bank or if they want to increase their capital.