Italian lender UniCredit has increased its stake in Commerzbank to around 21 per cent, making it the largest shareholder of the German bank. UniCredit acquired an additional 11.5 per cent stake in Commerzbank through financial instruments, bringing its total ownership to 21 per cent. The move has led to speculation that UniCredit could potentially seek a takeover of Commerzbank, although the German government has expressed no interest in allowing the bank to be bought.
UniCredit has also requested permission from the European Central Bank to raise its stake in Commerzbank to 29.9 per cent. The bank stated that it has the flexibility to either retain its shareholding, sell its participation, or increase its stake further, depending on negotiations with Commerzbank’s management, supervisory boards, and stakeholders in Germany. UniCredit’s CEO, Andrea Orcel, has ruled out a hostile takeover bid for Commerzbank, emphasizing that such a move would be seen as aggressive.
Commerzbank has not yet responded to UniCredit’s increased stake, and the German government has announced that it will not sell any more of its shares in Commerzbank for the time being. Berlin bailed out Commerzbank in 2009 during the global financial crisis, leading to the government’s ownership stake in the bank. Commerzbank has since become stable and profitable, with its strategy focused on remaining independent. The bank recorded its best annual net profit in 15 years in 2023 and aims for even better results in 2024, despite expected lower interest rates.
Before UniCredit acquired a stake in Commerzbank, Berlin had indicated its intention to sell down its ownership stake in the bank due to its improved economic situation. UniCredit purchased half of its initial nine-per cent stake in Commerzbank from the German government and the remaining shares on the open market. The Italian lender already owns Germany’s HypoVereinsbank, and the increased stake in Commerzbank further strengthens its position in the German banking sector. The future of the relationship between UniCredit and Commerzbank remains uncertain, with potential negotiations and discussions expected to shape the outcome.
