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Banking · Europe · Germany · M&A
Italian bank UniCredit has launched a €35 billion takeover offer for Commerzbank, aiming to increase its stake to over 30% and trigger a mandatory takeover bid under German law, though not initially seeking full control.
This move, intended by UniCredit CEO Andrea Orcel to open dialogue and resolve a "suboptimal situation" since UniCredit acquired a substantial stake in 2024, has met fierce opposition. The German government, holding a 12.1% stake from a 2008 bailout, swiftly declared any "hostile takeover" of the systemically important bank "unacceptable," vowing to preserve its independence.
Commerzbank CEO Bettina Orlopp also rejected the uncoordinated approach, stating the offer lacked a premium for shareholders, despite UniCredit's 4% premium on Friday's closing price, which saw Commerzbank shares jump 9.4% post-offer. Staff unions fear massive job cuts.
While German stakeholders resist, some European policymakers, including ECB chief Christine Lagarde, support cross-border banking mergers to enhance regional competitiveness against larger global rivals. This escalating battle highlights the tension between national economic interests and the broader push for European financial sector consolidation.