Decision Nº M/11/013 from Competition and Consumer Protection Commission, 2011-05-30

Date30 May 2011
Decision Date30 May 2011
Decision NumberM/11/013
PartiesDZ BANK AG,DZ PRIVATBANK S.A.,WGZ BANK AG
StatusCleared (Phase 1)
Merger Notification No. M/11/013 – DZ Bank/WGZ Bank/DZ Privatbank
DETERMINATION OF MERGER NOTIFICATION M/11/013 -
DZ BANK/WGZ BANK/DZ PRIVATBANK
Section 21 of the Competition Act 2002
Proposed acquisition by DZ Ba nk AG a nd WGZ B ank AG o f Joint
Control of DZ Privatbank S.A.
Dated 30 May 2011
Introduction
1. On 4 May 2011, in accordance with section 18 of the Competition Act
2002 (“the Act”), the Competition Authority (the “Authori ty”) received
a notification of a proposed transaction whereby DZ Bank AG Deutsche
Zentral-Genossenschaftsbank (“DZ Bank”) and WGZ Bank AG
Westdeutsche Genossenschafts-Zentralbank (“WGZ Ban k”) would
acquire joint control of DZ Privatbank S.A. Luxembourg (“DZ
Privatbank”).
2. The proposed transaction involves the pooling of the private banking
activities of DZ Bank a nd WGZ Bank into an existing subsidiary of th e
former, DZ Privatbank, and the subsequent acqui sition of joint control
of that subsidiary by DZ Bank and WGZ Bank.
The Undertakings Involved
DZ Bank
3. DZ Bank is a central and commercial bank in corporated in Germany. It
is the fifth largest bank in Germany and is a member of the Association
of Cooperative Banks which services 30 million private and corporate
customers. DZ Bank acts as a central bank for approximately 920
cooperative banks and it that capacity provides services and support
for individual cooperative banks in Germany, includi ng li quidity
equalisation.
4. In addition to its central bank function withi n the cooperative banking
sector in Germany, DZ Bank also acts as a national clearing bank for
corporate custom ers. DZ Bank offers the complete spectrum of
banking services to its customers, mainly in Germany.
5. DZ Bank Ireland plc (“DZ Bank Ireland”) is a w holly-owned subsi diary
of DZ Bank. DZ Bank Ireland holds a banking licence fr om the Central
Bank of Ireland. It i s focussed on investments via floating rate notes,
asset swaps, and bil ateral loans to a range of parties such as financial
institutions, corporations, and sovereign entities in Europe and North
America. It also provides medium and long-term fixed rate loans to
cooperative banks in Germany. According to the parties, DZ Bank
Ireland does not actively target customers in the State. However, a
minimal amount of the DZ Bank’s turnover is generated by DZ Bank
Ireland in the State (e.g., interest income on Irish securities). The

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