Commerzbank Chairman Doubts Amicable Merger with UniCredit After Stake Acquisition

Commerzbank’s supervisory board chairman, Jens Weidmann, has cast doubt on the possibility of an amicable merger with Italy’s UniCredit following its unexpected purchase of a significant stake in the German bank, according to Reuters.

In an interview with the German newspaper published on Monday, Weidmann compared the situation to a relationship that begins poorly. “It’s like any relationship: if the start is unsuccessful, it will be difficult,” he explained, reflecting the tension between the two financial institutions.

UniCredit now holds a 28% stake in Commerzbank, with 9.5% purchased directly and additional access to 18.5% via financial instruments. Weidmann expressed concerns that such a surprise move, which bypassed any initial trust-building talks between management, would not lead to sustainable value creation. “In mergers, it is important that the management first talks to each other in a spirit of trust and develops a common understanding. UniCredit has decided against this and surprised us with its entry. That’s not good style,” he told Handelsblatt.

Read more: Banco BPM Files Antitrust Complaint Against UniCredit’s Takeover Bid

The supervisory board chairman also emphasized the importance of maintaining two independent large private banks in Germany, citing Deutsche Bank and Commerzbank as critical to the nation’s financial sovereignty. He warned of the consequences of a merger, pointing to the aftermath of UniCredit’s acquisition of HypoVereinsbank and Bank Austria in 2005. “Commerzbank’s footprint in Germany would probably be smaller, and the attractiveness of Frankfurt as a financial center would suffer,” Weidmann stated, adding that many small and medium-sized businesses would be forced to adjust to the changes.

Source: Reuters.