Bernard J. Durkan
Question:36 Mr. Durkan asked the Minister for Finance the proposals, if any, he has in respect of any anticipated sales, mergers or takeovers in the banking industry; and if he will make a statement on the matter. [26873/99]
Written Answers. - State Banking Sector.
The Government agreed in February 1999 to a proposal from the boards of ACC and TSB for a merger and flotation. I appointed financial and legal advisers in May this year and they have, in conjunction with officials from my Department, the staff and management of both ACC and TSB Banks and their advisers, been working on the planning for the merger and flotation. The actual timing of the merger and the flotation depends on a number of factors including the final form taken by the business plan for the bank.
As I advised in answer to a previous question, ICC Bank, for which bids had been sought, has been withdrawn from the market for the present. I will now be asking the board, management and staff to consider the options for the future of ICC Bank in the light of current developments. I will consider all the options for a way forward on receipt of the views of these parties.
As regards private sector sales, mergers or takeovers, the main statutory authorities to be consulted would be those responsible for takeovers and competition. This would be the Minister for Enterprise, Trade and Employment at national level and the Commission at EU level. In the case of banking takeovers and partial acquisitions, additional provisions apply. Under Chapter VI of the Central Bank Act, 1989, an acquisition of more than 10% of the shares in a bank requires the approval of the Central Bank. Where the acquisition would result in the acquirer holding more than 20% of the total assets in the State of all licence holders, the consent of the Minister for Finance is required for any proposal approved by the Central Bank.
The legislation provides that the Minister for Finance may only consent to a proposal already approved by the Central Bank where, inter alia, he has consulted with the Minister for Enterprise, Trade and Employment where the proposed acquisition is such that it would come within the provisions of the mergers and takeover legislation. I have received no proposals seeking my consent under the relevant legislation.