EU Commission approves KBC restructuring plan

BRUSSELS Nov 18 (Reuters) - The European Commission said on Wednesday it had approved a restructuring plan set out by Belgian banking and insurance group KBC (KBC.BR) in return for state aid.

KBC, into which the Belgian and Flemish governments have pumped 7 billion euros ($10.4 billion), will remain as an integrated bancassurer but divest or run down a number of businesses, including in eastern Europe, particularly those that are non-core, the European Union's executive arm said.

The Commission said KBC would divest Belgian insurance unit Fidea and Belgian retail bank Centea and had also set out how it would repay the capital injections from Belgian authorities.

"The in-depth restructuring of KBC will restore its long-term viability and limit distortions of competition, while at the same time taking into account financial stability concerns," Competition Commissioner Neelie Kroes said in a statement. (Reporting by Philip Blenkinsop) ($1=.6710 Euro)