EC Blocks $786M In German Aid To DHL

Law360, New York (July 23, 2008, 12:00 AM EDT) -- The European Commission nixed Germany's plans on Wednesday to give express delivery provider DHL Group loan guarantees worth up to $786 million to help protect it from potential problems when it establishes a hub at Leipzig Halle Airport.

While the commission approved of the $549 million (€350 million) that Germany directed to the Leipzig airport to help fund a new runway, the EC found that the loan guarantees breached European state aid rules.

“In particular, the commission concluded that the unlimited guarantee allowed DHL to hedge...
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