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Germany has drawn a clear line between opposing UniCredit’s takeover tactics and intervening to stop the deal. Chancellor Friedrich Merz said his government would not block the Italian bank’s bid for Commerzbank, marking Berlin’s clearest indication yet that it will allow the market process to run its course despite months of political opposition. The remarks come as UniCredit edges closer to securing control of one of Germany’s most important lenders.
Details
- Government position: Merz said Germany has never attempted to prevent UniCredit’s takeover of Commerzbank, stressing that Berlin’s objections relate to the way the bid was pursued rather than the transaction itself. “We are not preventing this merger or this takeover, nor have we ever attempted to do so,” he said.
- Takeover gathers pace: UniCredit has steadily increased its stake in Commerzbank and now controls close to half of the bank’s voting rights, bringing it closer to gaining effective control of Germany’s second-largest listed lender.
- Resistance continues: Commerzbank’s management has continued urging shareholders to reject UniCredit’s offer, arguing that it undervalues the bank and does not present a compelling strategy for creating long-term value. Employees and labour representatives have also opposed the takeover.
- Why it matters: Germany remains a shareholder in Commerzbank after rescuing the bank during the global financial crisis, making the proposed takeover politically sensitive beyond a typical corporate acquisition. Merz’s comments suggest Berlin is prepared to separate its political concerns from its role as a shareholder.
What Else
- Market manipulation complaint: Commerzbank employees previously accused UniCredit of market manipulation over its takeover approach, but Frankfurt prosecutors declined to open a criminal investigation, saying there was insufficient evidence of a criminal offence.
- European banking debate: The proposed takeover has become part of a wider debate over cross-border banking consolidation in Europe. European Central Bank officials have argued that political resistance to such deals runs counter to efforts to build a stronger and more integrated European banking sector.
- Next step: Investors will now watch whether UniCredit can convert its growing shareholding into full control of Commerzbank and whether Germany’s decision not to intervene influences the remaining stages of the takeover process.
