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UniCredit Eyes Increased Stake in Germany’s Commerzbank, Sparking Market Reactions
Italian banking giant UniCredit is reportedly preparing to seek approval from the European Central Bank (ECB) to increase its stake in Commerzbank AG, one of Germany’s largest lenders, to as much as 30%, according to Italian newspaper Il Messaggero on Tuesday.
The news sent Commerzbank shares soaring to €15.85, a level not seen since 2012, before pulling back slightly. UniCredit’s shares also saw a modest 0.6% increase following the report.
UniCredit’s Recent Stake Acquisition
This development follows UniCredit’s initial acquisition of a 9% stake in Commerzbank last week. The Italian bank purchased 4.5% from the German government and another 4.5% from public investors, reducing the government’s holding in Commerzbank to 12%. Despite the reduction, the German government remains Commerzbank’s largest shareholder, having acquired a significant stake during the 2008 Global Financial Crisis when it injected €18.2 billion into the bank.
This sale marks the first step in the German government’s strategy to gradually reduce its stake, as outlined in a press release on September 7, which stated: “The Federal government intends to reduce its stake in Commerzbank AG.”
UniCredit had previously signaled its ambition to exceed a 10% ownership stake in Commerzbank. The bank noted last week that it would seek regulatory approval to surpass the 9.9% threshold if needed.
Regulatory Hurdles and Strategic Implications
To increase its stake, UniCredit must obtain approval from the ECB, as certain ownership thresholds — including 10%, 20%, 30%, and 50% — trigger regulatory scrutiny. Under German law, acquiring a 30% stake could also mandate a full takeover offer. Commerzbank is reportedly in discussions to explore defense strategies in response to the potential acquisition.
Cross-border bank mergers have gained support from European Union leaders, as they are seen as crucial for enhancing the EU’s global competitiveness and advancing the bloc’s banking union strategy. ECB President Christine Lagarde has expressed support for increased integration in the financial sector, and the potential tie-up between UniCredit and Commerzbank is expected to be well received by regulators.
If UniCredit submits its application, Germany’s financial regulator BaFin and the ECB will have between 60 and 90 days to respond.
Deutsche Bank’s Potential Opposition
Deutsche Bank AG, Germany’s largest financial institution, is reportedly exploring ways to block UniCredit’s move. A successful acquisition of Commerzbank could create a banking giant capable of overtaking Deutsche Bank in the German market. Deutsche Bank is reportedly considering acquiring the remaining 12% of Commerzbank still held by the German government to prevent UniCredit from gaining further control.
In 2019, Deutsche Bank engaged in merger talks with Commerzbank, but the discussions collapsed due to concerns over high restructuring costs.
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