Spanish government opens sanction procedure against Sacyr

The Spanish competition regulator said Monday it has begun a procedure to levy a sanction on construction company Sacyr SA following its acquisition of a 24.5% stake in real-estate company Vallehermoso SA.

Spanish banking giant Santander Central Hispano SA made an agreement to sell the Vallehermoso stake to Sacyr for EUR 568.75 million on May 28.

According to the regulator, because the operation will bring new consolidation to the Spanish construction sector, it requires government approval. The regulator said it received no advance notification.

The regulator added that although Sacyr acquired only a 24.5% stake in Vallehermoso, it believes the interest has effectively given Sacyr control of the company.

The regulator pointed out that June 12, the same day the sale was completed, Vallehermoso appointed Jose Maria Cuevas Salvador as its new chairman as well as several new board members.

(source: Dow Jones)

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