In a dramatic shift for one of Europe’s most bitterly fought banking battles, Commerzbank has dropped its remaining resistance to an unwanted takeover bid by Italy’s UniCredit. Commerzbank Chairman Jens Weidmann publicly invited the Italian lender to the negotiating table on Friday, shifting the German bank’s focus toward securing concessions for staff, clients, and shareholders. (Reuters)
The move marks the end of a long defense that began in September 2024, when UniCredit first built a stake in the German lender, drawing sharp criticism from Berlin and setting off a high-stakes corporate standoff. Commerzbank’s campaign against the deal crumbled in recent weeks as UniCredit steadily built up a 48% stake, a shareholding large enough to dictate voting outcomes at shareholder meetings and potentially oust the board.
Acknowledging the reality of the numbers, Weidmann—a former Bundesbank chief—noted that while they would have preferred a different outcome, the balance of power at the next Annual General Meeting is clear. He urged UniCredit Chief Executive Andrea Orcel to negotiate directly with Commerzbank’s leadership, cautioning that everyone needs to act like adults and emphasizing that there will be no shortcut via Berlin.
Despite Commerzbank’s invitation, direct talks between the management teams remain uncertain. Orcel recently expressed a desire to engage primarily with the German federal government and employee representatives, who hold half of the seats on Commerzbank’s supervisory board. While local political figures, including the premier of Commerzbank’s home state of Hesse, have pushed for direct bank-to-bank talks to protect local jobs and secure financing for small businesses, Orcel has maintained his focus on federal discussions.
With regulatory approvals expected by the end of the year to hand UniCredit full control of its stake, the Italian lender aims to begin implementing its strategy at Commerzbank starting in January. UniCredit has also signaled it could call an extraordinary shareholder meeting to unseat Commerzbank’s board ahead of the next regular annual meeting, bringing the German bank closer to losing its decades-long independence.