UniCredit Aims to Become Largest Commerzbank Shareholder
Italian bank UniCredit has announced plans to raise its stake in Germany’s Commerzbank, increasing ownership from 9% to 21%. If approved, UniCredit will become the largest shareholder, overtaking the German government’s 12% stake. This move is expected to stir tensions with Berlin, which has expressed strong opposition to the deal.
Regulatory Approval Required for Larger Stake
The increase in UniCredit’s stake is subject to regulatory approval. Additionally, UniCredit has requested permission from the European Central Bank to further increase its holding to as much as 29.9%. In a statement, UniCredit emphasized the potential value it sees in Commerzbank, which it believes could benefit both Germany and its stakeholders, provided necessary actions are taken.
Berlin’s Concerns and Resistance
The German government, which had been planning to reduce its stake in Commerzbank, halted the process in response to UniCredit’s actions. Politicians in Berlin have criticized UniCredit for handling its growing ownership in Commerzbank with secrecy. They claim that the Italian bank did not fully disclose its holdings, particularly after using derivatives to initially acquire a 4.5% stake earlier this month.
Public Tensions Between UniCredit and Berlin
Despite the criticism, UniCredit’s CEO Andrea Orcel insists that the German government was informed of the bank’s existing 9% stake before it made the latest acquisition. However, Berlin remains frustrated by the situation, fearing that the Italian bank’s growing influence could impact Commerzbank’s future. The dispute highlights the political sensitivity surrounding cross-border acquisitions in Europe.
Unions and Business Concerns
Unions are also opposing UniCredit’s increased stake, worrying that a potential takeover could lead to job cuts and reduce lending to small and medium-sized enterprises in Germany. Commerzbank’s management and supervisory boards are set to meet this week, with UniCredit’s growing influence likely to dominate the discussions. The outcome of these meetings could shape the future of the German bank.
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