Unicredit holds approximately 29% of shares in Commerzbank
In a recent development, Italian major bank UniCredit has increased its stake in German lender Commerzbank from about 20% to around 26%. This move, which took place in late August, has set the financial world abuzz with talk of a potential merger between the two banks.
UniCredit's spokesperson, Orcel, has stated that the bank is "under no pressure" and can "wait" regarding any immediate action. However, if UniCredit's stake were to exceed the 30% threshold, they would be legally obligated to present an official takeover offer to other Commerzbank shareholders.
It should be noted that UniCredit already owns an additional 3% stake in Commerzbank through financial instruments. This means that UniCredit currently holds a significant stake of approximately 29% in Commerzbank, placing it as the largest single shareholder since July.
Commerzbank, for its part, is focusing on its own growth strategy, as stated earlier. The German bank's CEO, Bettina Orlopp, remains unimpressed by UniCredit's recent moves. In the event of the 30% threshold being exceeded, Commerzbank requires a "very concrete proposal with numbers," suggesting a cautious approach to any potential merger discussions.
The German state is the second-largest shareholder of Commerzbank, with slightly more than 12% of the bank's shares. However, the sale of these shares is currently prohibited, adding another layer of complexity to any potential merger discussions.
There are concerns on the Commerzbank side that a merger could lead to extensive job cuts and branch closures. This sentiment is echoed in Berlin and Frankfurt, where UniCredit's actions towards Commerzbank are perceived as "unfriendly" and "hostile."
However, UniCredit sees potential in a merger with Commerzbank for the business with private and small business customers. The bank believes that a combined entity could offer a stronger platform for growth and increased competitiveness in the European banking market.
Last year, UniCredit purchased a significant stake in Commerzbank following the federal government's partial exit. This history of investment suggests a long-term strategy on UniCredit's part, rather than a quick takeover attempt.
As the situation continues to unfold, both banks and the financial community will be watching closely to see if UniCredit will push for a merger or if Commerzbank will resist. Only time will tell if this potential merger will come to fruition.
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