UniCredit, an Italian lender, is seeking approval from the European Central Bank (ECB) to increase its stake in Germany’s Commerzbank AG to up to 30%. This move follows UniCredit’s recent acquisition of a 9% stake in Commerzbank, sparking a surge in Commerzbank shares to levels not seen since 2012. UniCredit’s shares also gained following the news.
The German government, which holds a 12% stake in Commerzbank, recently reduced its holdings through a sale to UniCredit. UniCredit had expressed its intention to exceed a 10% ownership in Commerzbank, with key ownership thresholds requiring approval from the ECB. A 30% stake could trigger a mandatory full takeover under German law, leading Commerzbank to urgently discuss defence strategies.
This potential merger between UniCredit and Commerzbank aligns with EU efforts to boost competitiveness and integration within the banking sector. However, Deutsche Bank AG, Germany’s largest bank, is reportedly exploring ways to oppose the deal. If UniCredit goes through with a full takeover of Commerzbank, it could create a new banking giant that might surpass Deutsche Bank in size.
Authorities, including Germany’s financial regulator BaFin and the ECB, will have 60 to 90 days to respond once UniCredit submits its application. Deutsche Bank may counter the potential merger by acquiring the remaining 12% stake in Commerzbank still held by the German government. Previous merger discussions between Deutsche Bank and Commerzbank in 2019 collapsed due to concerns over restructuring costs.
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