UniCredit Gets ECB Approval to Buy Part of Commerzbank, Full Takeover Decision Likely Delayed Until 2026
The European Central Bank (ECB) has given UniCredit, an Italian bank, the go-ahead to buy up to 29.9% of Commerzbank, a major German bank. According to Reuters, UniCredit plans to wait until next year before deciding whether to go for a full takeover. This could become one of Europe’s biggest cross-border banking deals since the 2008 financial crisis.
However, the potential deal has caused tension in Germany. The German finance ministry has strongly opposed the idea, calling hostile takeovers in the banking sector “inappropriate,” especially for a bank as important as Commerzbank. Reuters reports that Commerzbank, which was bailed out by the German government in 2009, has vowed to stay independent.
UniCredit’s CEO, Andrea Orcel, is known for his deal-making skills. He has made it clear that UniCredit will only move forward with the deal if all stakeholders, including the German government, support it. Reuters highlights that Orcel is waiting for the new German government to form before starting any serious discussions.
The ECB’s approval was expected because UniCredit is financially strong, and regulators generally support bank consolidation. However, as Reuters explains, there are still many hurdles to clear, including approval from Germany’s competition authority. UniCredit has also said the decision on whether to proceed with a full takeover will likely extend beyond 2025.
Meanwhile, UniCredit is also focusing on deals in Italy. Reuters reports that the bank is preparing a hostile bid for Banco BPM, another Italian bank, and has received ECB approval to issue shares to fund the takeover. Orcel has assured investors that the potential deals with Commerzbank and Banco BPM won’t overlap.
UniCredit’s share price has risen significantly under Orcel’s leadership, thanks to higher interest rates and strong investor payouts. Commerzbank’s shares have also jumped by 60% since September, according to Reuters.
However, some experts warn that Europe’s banking system isn’t ready for such a large cross-border deal. Tobias Troeger, a professor at Goethe University, told Reuters that the eurozone lacks the necessary framework to handle a crisis involving two major banks like UniCredit and Commerzbank.
This story, as reported by Reuters, shows how complex and politically sensitive big banking deals can be. While UniCredit is moving forward with its plans, the final decision on Commerzbank is still far off.
For more updates on this developing story, stay tuned to Reuters and other trusted news sources.
Credit: Reuters for detailed reporting and insights on this story.