The European Commission has said it approved restructuring plans for Dutch state-owned bank ABN Amro, subject to a ban on acquisitions and a condition that it achieves certain margins in private banking.

The Dutch state nationalised the Dutch activities of ABN Amro and Fortis Bank Nederland in 2008 after the dramatic failure of a three-pronged hostile takeover of ABN Amro by Royal Bank of Scotland, Fortis and Banco Santander.

“The conditions set by the commission to accompany the restructuring plan shall effectively ensure that the aid is [to] be used to make the ABN Amro Group viable in the long term and prevent that the aid finances competition-distorting initiatives,” said EU competition commissioner Joaquin Almunia, in a statement.