UniCredit Seeks Green Light from German Regulators for Commerzbank Stake

UniCredit is moving closer to securing regulatory approvals necessary to convert its Commerzbank derivatives into shares, a process that requires authorization from both German and European authorities. According to Bloomberg, the European Central Bank (ECB) is expected to grant its approval by early next week, allowing the Italian bank to hold as much as 29.9% of Commerzbank’s shares.

In addition to ECB approval, UniCredit must also obtain clearance from Germany’s antitrust authority. The Italian lender has submitted an application for merger control with the German federal cartel office, seeking approval for a potential stake of up to 29.99%. As previously stated by a spokesperson for the authority last month, the review process officially begins once all necessary notification documents are received.

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

Per Bloomberg, the German competition regulator initially has a one-month period to assess the transaction. If it determines that a more detailed review is required, a formal examination process will be initiated, which could extend the timeline for a final decision.

UniCredit can only proceed with converting its derivatives into Commerzbank shares after securing approval from both the ECB and the German federal cartel office, people familiar with the matter told Bloomberg. These individuals, who spoke on condition of anonymity, emphasized the private nature of the discussions.

The Italian banking group’s potential move to increase its stake in Commerzbank is being closely watched, as it could signal broader consolidation efforts in the European banking sector.

Source: Bloomberg