Commerzbank's Clash with Unicredit: Merz Labels Unicredit's Maneuvers "Unacceptable"
Unacceptable actions by Unicredit criticized by Merz
In the hidden war for Commerzbank, Unicredit is steadily acquiring shares of its competitor—all without fanfare. The Italian behemoth is seizing Commerzbank's shares, leaving Chancellor Friedrich Merz appalled. "Unacceptable," Merz declares in a scathing letter.
Merz stands by Commerzbank, offering his backing in the bank's resistance against the overtures from Unicredit. In a letter published on LinkedIn, Merz asserts his support for the bank's independence, asserting that such a "secretive and aggressive approach" from Unicredit is unjustified.
The federal government, keeping close tabs on the situation, receives regular updates from Finance Minister Lars Klingbeil, who firmly supports Commerzbank's autonomy. Klingbeil previously denounced Unicredit's tactics, deeming them unacceptable, especially for a bank as systemically important as Commerzbank.
Earlier this year, Unicredit leveraged the German government's partial exit from Commerzbank last September to sneakily acquire shares of the bank. Now, Unicredit has become the second-largest shareholder of Commerzbank with 28% access to the company via financial instruments, inching closer to the mandatory takeover threshold.
Unicredit's CEO, Andrea Orcel, remains unfazed. With 30% shares in his grasp, he shows no sign of backing down. He quips, "The fact that we are polite and fair people who wait for the right moment doesn't change the fact that we have 30%." Orcel is content to wait for the opportune moment to strike, possibly extending his plans until 2027.
- Commerzbank
- Unicredit
- Friedrich Merz
- Lars Klingbeil
- Banks
Insights
- Unicredit is hanging onto a delicate 28% stake in Commerzbank, just shy of the 30% threshold triggering mandatory takeover rules in Germany. Crossing this threshold would obligate Unicredit to make a full bid, possibly raising concerns about antitrust scrutiny and financial risks, given Commerzbank's sizable market share in SME loans.
- Unicredit's shares have underperformed the Euro Stoxx Banks index, as investors view the proposed merger with skepticism. Meanwhile, Commerzbank's recent profitability success, albeit still insufficient to justify the market's expectation, has fueled a share price surge of 100%.
- Commerzbank's fight against the proposed takeover faces significant opposition from key German political figures, with the possibility of political interventions looming over the deal. Chancellor Friedrich Merz has been vocal in his opposition, while Finance Minister Lars Klingbeil has squarely backed Commerzbank's autonomy.
- Friedrich Merz and Lars Klingbeil, in their respective roles as Chancellor and Finance Minister, have expressed their support for Commerzbank's community policy and employment policy, stressing the importance of the bank's independence and the potential risks associated with Unicredit's employment policy, especially considering Commerzbank's significance in the industry and finance, and its market share in SME loans.
- Amidst the ongoing battle between Commerzbank and Unicredit, the federal government remains vigilant, keeping a close eye on the developments, and is attentive to the potential impact on businesses, particularly in light of Unicredit's strategic maneuvers within the banking sector, and the broader implications for employment policy and employment policy within the industry.
