- UniCredit joins forces with Commerzbank, sparking speculations about potential acquisition.
Italian massive bank Unicredit is boosting its investment in Commerzbank, sparking rumors of a potential takeover of the German financial giant located in Frankfurt. The Italians bought shares in the government's sale announcement and even more shares on the market, as reported by Unicredit in Milan. As a result, Italians now hold approximately 9% of Commerzbank's stock shares.
The trade union Verdi expressed opposition to a potential takeover of Germany's second-largest private bank, urging government support. The government has recently started withdrawing from Commerzbank.
Unicredit hasn't decided whether to escalate its stake in Commerzbank. They want the green light from regulators to exceed the 9.9% limit by obtaining approval to boost their stake further. Following the news, Commerzbank shares soared by about 19%. "Commerzbank has become a potential takeover target in our view," wrote analyst Philipp Häßler from DZ Bank.
Meanwhile, Commerzbank's CEO Manfred Knof will not extend his contract, which expires at the end of 2025. The DAX company divulged this unexpectedly on Tuesday night, initiating the search for his successor immediately.
In light of the news from Milan, Commerzbank stated that its board and supervisory board would continue to operate in the best interest of all shareholders, employees, and customers. Unicredit's stake is seen as a "testament to the importance of Commerzbank."
Employee representatives, however, voiced concerns. Verdi union secretary and Commerzbank supervisory board member Stefan Wittmann expressed resistance, warning they would "fight back with all means." He recalled the takeover of Munich's Hypo-Vereinsbank by Unicredit, resulting in job cuts and the transfer of many competencies to Milan. Wittmann appealed to the federal government to help prevent an unfavorable takeover of Commerzbank.
Unicredit overshadowed other offers
Unicredit acquired around half of the 9-percent stake from the government. The government sold nearly 4.5% of its stake to the Italians under its announced exit from Commerzbank. Unicredit paid more than the shares' value at the time on the stock market, according to the federal finance agency. All shares offered by the government went to Unicredit due to "a significant overbid of all other offers."
The government banked around 700 million euros from selling around 53 million shares. The government's stake in Commerzbank, which entered partial nationalization during the financial crisis, is now reduced to 12%, but it remains the largest shareholder for the time being.
Unicredit deeply engaged in German retail banking
With a 9% stake, Unicredit is now the second-largest shareholder. Unicredit had already infiltrated the German banking sector nearly 20 years ago. In 2005, it bought the German Hypovereinsbank for approximately 15 billion euros and has since had a strong presence in the German retail market.
Both Unicredit and Commerzbank were in the red on the stock market during the 2008/2009 financial crisis and the Eurozone debt crisis. However, their situation has significantly improved since then, thanks to increasing interest rates.
Unicredit has a market value of nearly 60 billion euros on the stock exchange and financially capable of acquiring Commerzbank, whose market value is around 15 billion euros, or approximately a quarter of that. Rumors of an Italian takeover have been circulating in recent years.
Commerzbank seeks new CEO
Amidst the succession of CEO Knof, who unexpectedly announced his departure at the end of 2025 for personal reasons, Commerzbank has been navigating this change. Under Knof's leadership, the bank implemented austerity measures, leading to job cuts and a significant reduction in its branch network. Thanks to the restructuring and rising interest rates, Commerzbank has managed to turn the tide.
The most likely candidate for the succession is Commerzbank's Chief Financial Officer and Vice-Chairman of the Board, Bettina Orlopp (54). She has long been speculated as harboring ambitions for the top position. The question of who will lead Commerzbank in the future has caused unrest at the institution, sparking rumors of a power struggle.
Unicredit is currently considering whether to increase its stake in the Large bank Commerzbank beyond the 9.9% limit, requiring approval from regulators. The acquisition of the Large bank shares by Unicredit has significantly boosted Commerzbank's stock value.
