UniCredit CEO says Commerzbank takeover an option: Bloomberg

Shares in UniCredit rose as its CEO said acquiring Commerzbank was a possibility – Copyright AFP Alexander NEMENOV

UniCredit is studying a takeover of Commerzbank, Chief Executive Andrea Orcel said Thursday, a day after Italy’s second-largest bank surprised markets by revealing a nine-percent stake in its German rival. 

“Conversations about an M&A (merger and acquisition) or a further combination are on top” of ongoing discussions, Orcel told Bloomberg Television in an interview.

“We may go up, we may go down, and we may combine,” Orcel added. 

In announcing its stake Wednesday, UniCredit said it intended to request authorisation to exceed 9.9 percent of Commerzbank’s capital “if and when necessary”.

UniCredit’s 4.49 percent stake was bought in an accelerated procedure on behalf of the German state for 702 million euros, bringing the total acquisition amount to around 1.4 billion euros ($1.54 billion). 

The remainder was bought on the market, UniCredit said Wednesday. 

Berlin on Tuesday had announced its intention to sell a 4.5 percent stake in Commerzbank, the first step in its withdrawal from Germany’s second-largest bank after saving it from bankruptcy in 2009. 

“We think there is space given fragmentation of the market to add further value by consolidating,” Orcel said in the interview. 

“If there is the basis to do that constructively and strengthen what we can provide to the German economy and Europe then that is a great move for UniCredit,” he added.

Unicredit’s next step is to enter into discussions with Commerzbank’s stakeholders to see “whether there is a basis for a combination”, Orcel said. 

The services sector union Verdi, which is represented on Commerzbank’s supervisory board, called on the German government on Wednesday to “oppose” a possible takeover and not to sell further shares to UniCredit.

“We have always entertained a dialog with regulators, institutions and counterparts in Germany,” Orcel said. 

“I would have thought all the relevant stakeholders were well aware of what we were doing and we would not have moved otherwise.”

Unicredit’s interest in Commerzbank comes after a failed attempt in October 2021 to take over Monte dei Paschi di Siena bank, which was itself saved from bankruptcy by the Italian state. 

Shares of Unicredit rose 2.6 percent at midday to 37.10 euros.