The European Commission has given the green light to Banco Santander Totta’s (BST) acquisition of Portugal's troubled bank Banif.
Banco Santander Totta, a unit of Spanish banking group Banco Santander, will purchase certain assets and liabilities of the Portuguese bank as part of the deal.
The two banks offer retail banking, corporate banking and card payment services in Portugal.
The Commission said: “the proposed transaction would raise no competition concerns given that the overlaps between BANIF and BST’s activities are limited at national level”.
Banif also operates in Madeira and the Azores, though its presence in these regions may not raise concerns, according to the Commission as "Banif and BST are not close competitors and that most Portuguese banks are also present in Madeira and the Azores and have a uniform pricing policy for entire Portugal."
The deal, announced in December 2015, is valued at EUR150m.