Competition rules could scupper Abbey deal

The Spanish bank poised to take over Britain's Abbey National will walk away if the £8.2bn (€12.1bn) deal is stalled by competition concerns, it was reported today.

Banco Santander Central Hispano (BSCH) is understood to fear a rival bid from a UK bank, leading to a drawn-out investigation by competition authorities.

According to The Sunday Telegraph, BSCH is concerned about the potential damage to Abbey’s business by a probe that could last longer than 24 weeks.

Earlier this month it emerged that Halifax and Bank of Scotland group HBOS was examining whether to mount a counter-bid.

It is likely a firm offer would attract the scrutiny of the UK Competition Commission as around 70% of Abbey’s 741 branches are within a quarter of a mile of an HBOS branch.