• 18 OCT 2011
WSJ (EU Temporarily Clears Aid For Dexia Bank Belgium
BRUSSELS (Dow Jones)--The European Commission Monday temporarily cleared the purchase of Dexia SA's (DEXB.BT) Belgian subsidiary by the Belgian government but opened an in-depth probe into the deal.
Belgium earlier this month agreed to buy Dexia Bank Belgium for EUR4 billion. The deal was part of an agreement between Dexia and the Belgian, French and Luxembourg governments to split Dexia, after the bank faced a funding squeeze.
"The Commission acknowledges that the measure is necessary to preserve financial stability," it said in a statement. "However, at this stage, the Commission is not able to conclude whether the acquisition by the Belgian State complies with European Union state aid rules."
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