Unicredit holds a significant 29% stake in Commerzbank's share portfolio.
In a move that has raised eyebrows in Berlin and Frankfurt, Italian banking giant UniCredit has overtaken the German federal government as the largest single shareholder of Commerzbank. UniCredit's stake in Commerzbank now stands at approximately 29 percent, a significant increase from its previous 20 percent.
The escalation began last year when UniCredit acquired a substantial stake in Commerzbank through the federal government's partial exit. This latest development, crossing the 30 percent threshold, triggers regulatory requirements for UniCredit to present an official takeover bid to Commerzbank's other shareholders.
However, UniCredit's CEO, Jean-Pierre Orcel, has stated that they are "under no pressure" and can "wait" regarding a potential takeover. Commerzbank's CEO, Bettina Orlopp, remains unimpressed by UniCritic's recent moves, suggesting that the bank's management perceives them as "unfriendly" or "hostile."
Orlopp's stance indicates that Commerzbank may require a "very specific proposal with numbers" before any potential takeover can occur. Meanwhile, Commerzbank is focusing on its own growth strategy, with no immediate plans to entertain takeover offers.
UniCredit sees opportunities in a merger with Commerzbank, particularly in the business with private and small to medium-sized enterprise (SME) customers. However, concerns on the Commerzbank side persist, with fears of significant job cuts and branch closures should a merger materialise.
The federal government still holds slightly more than 12 percent of Commerzbank's shares and has no plans to sell them. Orcel has reiterated that UniCredit is not under any pressure to make an immediate move, implying a potential lengthy standoff in the making.
As the situation unfolds, both banks will need to navigate the complexities of their relationship carefully, balancing strategic ambitions with the potential impact on their employees, customers, and shareholders.
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