34

UniCredit Advances Takeover Bid for Commerzbank

UniCredit increased its stake in Commerzbank by 7%, bringing its total holding to 28% as it pursues a controversial takeover. The Italian bank confirmed its intention to raise its stake to 29.9%, stating the move aligns with its long-term plans.

UniCredit disclosed it had submitted regulatory filings to the European Central Bank (ECB) for approval to increase its direct stake from under 10% to just under 30%. The ECB has 60 days to decide, with a possible 30-day extension.

ECB Likely to Support Cross-Border Merger

The ECB has previously expressed support for UniCredit’s potential full takeover of Commerzbank, seeing it as beneficial for the European banking system. ECB President Christine Lagarde emphasized that cross-border banking mergers create stronger, more agile institutions. Such steps, she noted, enhance European banks’ competitiveness against U.S. and Chinese counterparts.

UniCredit began building its stake in Commerzbank in September, sparking speculation of a takeover. The Italian bank currently holds a 9.5% direct stake and an additional 18.5% through derivatives.

Strategy for European Banking Unity

The ECB views UniCredit’s move as aligned with its broader strategy to unify the single market and enhance global competitiveness. A full merger would represent a significant step in creating a more integrated European banking sector.

As UniCredit edges closer to the 29.9% threshold, the takeover bid reflects increasing momentum toward consolidation within the European banking system. The ECB’s decision in the coming months will play a pivotal role in shaping the future of the proposed merger.