UniCredit Seeks German Antitrust Approval for Commerzbank Stake

UniCredit has taken a crucial step in its ongoing pursuit of Commerzbank by seeking approval from German antitrust authorities to acquire a significant stake in the German lender, according to Reuters. The move signals the Italian bank’s determination to proceed despite opposition from both Commerzbank and Germany’s political establishment.

Per Reuters, UniCredit has structured a series of financial transactions that would allow it to secure a nearly 30% stake in Commerzbank. This level of ownership brings the bank to the verge of a full takeover, which could have substantial implications for Germany’s banking sector, particularly for Mittelstand companies that rely heavily on Commerzbank for financing.

German competition regulators could decide on UniCredit’s application within a month. However, if they determine that the acquisition could distort market competition—such as by limiting access to credit for local businesses—they may initiate a more detailed review, potentially delaying the process by an additional four months. The regulators also have the authority to impose conditions on the purchase, per Reuters.

Related: Commerzbank Chairman Doubts Amicable Merger with UniCredit After Stake Acquisition

Should UniCredit move forward with a full acquisition of Commerzbank, it would face further regulatory scrutiny, including approval from the European Commission and the European Central Bank. So far, UniCredit has declined to comment on its intentions.

Andrea Orcel, CEO of UniCredit, made waves in Germany’s corporate and political circles last year when the bank unexpectedly acquired a significant stake in Commerzbank, aiming to push for a cross-border banking merger. The move has since tested Germany’s resistance to foreign acquisitions of its key financial institutions, particularly in Frankfurt, the country’s financial hub.

The proposed takeover has faced strong resistance from Commerzbank’s leadership, its workforce, and key political figures, including German Chancellor Olaf Scholz. Boris Rhein, the premier of Hesse—Commerzbank’s home state—publicly denounced the effort, telling a financial gathering in Frankfurt that UniCredit should abandon its plans.

“Nobody wants what you are doing. Withdraw!” Rhein declared, underscoring the widespread opposition to the potential deal.

Despite these challenges, UniCredit remains persistent in its efforts, with its latest regulatory filing marking another step in the complex and politically sensitive process of acquiring one of Germany’s largest commercial banks.

Source: Reuters