For the first time, the Minister for Finance has approved a takeover under special merger control rules applying to credit institutions. Under the Competition Act 2002, the Competition Authority has principal responsibility for reviewing proposed mergers. However, under the Credit Institutions (Financial Support) Act 2008, where a merger involving a credit institution is necessary for the stability of the State’s financial system, the Minister for Finance (rather than the Competition Authority) may assess and approve the merger. On 27 June 2011, the Minister for Finance exercised this power and approved the takeover of EBS building society by AIB.

Contributed by Sarah Lynam, Cormac Little.

Back to Legal News