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Banking · European Finance · M&A · Takeover
UniCredit significantly escalated its contested takeover bid for Commerzbank on Monday, presenting a detailed plan that labeled the German lender "overvalued" and "not future-ready," leading to a 0.9% rise in Commerzbank shares to €36.37 while UniCredit shares fell 2.3% to €68.51 in Milan.
UniCredit's "Commerzbank Unlocked" plan projects a return on tangible equity above 19% by 2028 and net profit of approximately €5.1 billion, significantly outperforming Commerzbank's "Momentum" consensus of 15% and €4.5 billion, respectively. The Italian bank argued Commerzbank's 2025 results masked a €200 million cost miss, offset by a €500 million net interest income beat.
UniCredit directly addressed Commerzbank's objections, stating 60% of cost savings would be non-HR and non-core, and German headcount reductions would be less than half of the 15,000 figure cited by Commerzbank. UniCredit also offered Germany the "number one country" status in the group by 2030 net profit, with 95% local decision-making, an offer it claims Commerzbank refused to explore.
