Insurance: State aid to GAN

United Kingdom
The Commission has allowed a State aid injection of ECU 15.7bn (£23bn) in return for the restructuring of the State-owned French insurance group GAN.

The Commission has demanded that the French government:

  • sell CIC (GAN's banking arm) and GAN by next June at the latest;

  • sell UCI and UIS, GAN's property interests, between now and the end of 1998;

  • sell stakes in other businesses worth ECU 1.6bn (£2.3bn) and reduce GAN's international interests by 50% within a year of privatisation; and

  • ensure that potential buyers of GAN and its subsidiaries be selected according to their ability to maximise receipts while also guaranteeing the long-term viability of the businesses.

Several insurance groups have expressed an interest in acquiring GAN.