(by Nick Band)

The European Union competition commissioner Mario Monti has said recently that European Commission would approve Santander Central Hispano’s bid for Abbey National. The remark has led to different comments.

EU is going to set a single market of financial services, and Santander’s bid would be the step towards it, Monti said. “At first glance, it is a contribution to the objective of the Commission of having a more integrated financial services market,” he added.

The reaction of HBOS, Britain’s fourth biggest bank, was firm as it has the intention to bid for Abbey as well. The bank has complained about the SCH bid on competition grounds. Commission states that there’s no geographical overlap between the operations of SCH and Abbey, and therefore no fundamental competition problem.

He is expected to propose approval for the €2.88 billion bid by September 17.