The European Commission has approved the $1.2bn sale of German state-controlled shipping lender HSH Nordbank to private equity investors.
It found the privatisation process was "open, competitive and non-discriminatory", requiring no further state aid and landing a "positive price".
Competition commissioner Margrethe Vestager said: "The German authorities have found a sustainable solution for HSH Nordbank that avoids the need for further public support for the bank.
"On the basis of the new private owner's business plan, HSH can become a viable market player, continuing to support economic development in Germany."
In February, the bank agreed a $1.2bn sale to Cerberus European Investments, JC Flowers, GoldenTree Asset Management, Centaurus Capital and BAWAG.
Earlier this month, HSH CEO Stefan Ermisch said: "We are on the point of completing the privatisation and expect the deal to be closed very soon – after which a new era will begin for the bank."
The Commission said: "The business plan foresees a significant boost in the bank's profitability thanks to improved asset quality combined with increased efficiency and better cost control. This will ensure that HSH becomes a solvent and viable market player."
Nord/LB looking for loan buyers
Meanwhile, it has been reported that another German lender, Nord/LB, is trying to shed almost all of its non-performing shipping loans this year, much earlier than it has previously said.
Reuters cited sources as saying that although there are talks with potential buyers for the shipping loans, any deal is conditional on separate negotiations the bank is holding over bringing in a new investor.
Public sector bank Helaba, shipping lender Commerzbank and private equity investors have reportedly been shortlisted to buy a stake.
Nord/LB is said to be offering two packages of non-performing shipping loans with a face value of EUR 2.5bn ($2.84bn) and almost EUR 4bn.
A bank spokesman told Reuters that its target of cutting the portfolio from EUR 7.7bn to less than EUR 5bn by the end of 2019 was likely to be hit well ahead of schedule, but did not comment further.
A sale of the two books would leave it with non-performing shipping loans totalling EUR 1.2bn.
