News
Banking M&A · Commerzbank · Germany · UniCredit
Commerzbank formally dismissed a purchase proposal from Italy's UniCredit, which sought a cross-border takeover of the German lender, valuing the bank at nearly €39 billion, less than its market rate, with management advising shareholders to reject the offer.
The decision follows an extensive analysis that found the proposal did not reflect Commerzbank's true value and carried substantial risks. Despite UniCredit emerging as Commerzbank's largest shareholder, the German bank's management and supervisory boards aligned with criticism from the German government and staff, who labeled the bid as vague.
This rejection extends the ongoing contention for control, with UniCredit CEO Andrea Orcel previously criticizing Commerzbank's underperformance. The failure of the prospective deal avoids significant job cuts and investor exposure to uncertainties tied to UniCredit’s ventures in Russia and holdings in Italian bonds.
