UniCredit has received authorization from the European Central Bank (ECB) to acquire a direct stake of up to 29.9% in Commerzbank.
Despite this approval, UniCredit still needs the approval from the German Federal Cartel Office to complete the acquisition. Unicredit already filed this acquisition of approximately 18.5% stake with the German regulator back in February and it is waiting for approval. Furthermore, UniCredit is awaiting the opportunity to engage in discussions with Germany’s new government to appease policy-makers.
While UniCredit acknowledges the positive impact its investment has had on Commerzbank’s share price—bolstered by an improved macroeconomic outlook in Germany—the Italian bank remains cautious. The bank has emphasized that only over time will it become clear whether a full integration plan is viable and sustainable.
UniCredit has indicated that a decision on a full takeover is unlikely before 2026, extending beyond its initial timeline. This extension is attributed to ongoing regulatory discussions, economic considerations, and the necessity of broader stakeholder engagement.
Germany’s response to UniCredit’s increasing stake has been largely resistant. The German finance ministry reiterated its stance against hostile takeovers of systemically important banks, emphasizing the importance of Commerzbank’s independence. Commerzbank itself has maintained that UniCredit remains a shareholder and that the ECB’s approval does not alter its strategic position.
As UniCredit’s CEO Andrea Orcel navigates regulatory complexities in Germany, he is concurrently focused on domestic consolidation efforts in Italy. The bank is currently engaged in the acquisition of Banco BPM and holds a strategic stake in Generali, Italy’s largest insurer. These domestic maneuvers highlight UniCredit’s prioritization of growth opportunities within its home market while maintaining optionality for external expansion.
The ECB’s approval represents an important step in what could be one of Europe’s most significant banking consolidations in recent history. However, with the European banking union reforms still incomplete, experts have warned about the risks of major cross-border banking deals without a stronger institutional framework, Reuters reported.
The bank has reassured investors that any external growth, including the potential Commerzbank acquisition, will be pursued only if it aligns with its financial metrics and long-term strategic goals.
In Italy, the Banco BPM’s acquisition still faces regulatory hurdles and the target involved the antitrust regulator in a move to seek protection from a hostile takeover.
