The Dutch government's nationalisation of Fortis' Dutch banking unit and its recently acquired ABN AMRO operation may have breached European Union state aid rules, EU antitrust regulators said today.
Competition Commissioner Neelie Kroes announced an in-depth investigation, saying: "At this stage, the Commission has reason to believe that the measures may not be in line with its communications on state aid to banks during the crisis."
Commissioner Kroes said in a statement the Dutch intervention was justified because of the risk of bankruptcy for Fortis Bank Nederland (FBN) but added there were competition concerns.
Last October, the Dutch state took over the Dutch business of financial group Fortis and ABN for €16.8 billion ($22.16 billion) after the now dismantled Belgian financial group lost the confidence of investors and depositors, a victim of the credit crisis.
It was in the midst of digesting its acquisition of ABN, purchased in 2007 in a consortium with RBS and Spain's Santander for €70 billion ($92.32 billion).
The Commission said it was concerned about a loan facility granted to FBN, the interest charged by the Dutch state and the price paid for the purchase of ABN activities from FBN and whether they comply with EU state aid rules.