BRUSSELS, May 30 (Reuters) - EU regulators said on Wednesday they had approved Spanish state aid to regional savings bank Caja de Ahorros del Mediterraneo (CAM) under a restructuring plan in which its banking activities were sold to Banco Sabadell .
The European Commission, which acts as competition regulator for the 27-member bloc, said Madrid’s aid in the CAM rescue was in line with the rules.
“The Commission found that the restructuring plan adequately addresses the problems that led to the bail-out of the bank in July 2011,” the Commission said in a statement.
“The disappearance of Banco CAM from the market as an independent entity, the sale of its banking business to Banco Sabadell and the deep restructuring foreseen should ensure long-term viability without continued state support, whilst avoiding undue distortions of competition.”
Sabadell agreed to buy the banking business of CAM in December, in a deal that included several support measures from the Spanish bank restructuring fund and the Spanish deposit guarantee fund. (Writing by Rex Merrifield; editing by Robert-Jan Bartunek)