Italy's UniCredit has received permission from the European Central Bank to acquire control of Germany's Commerzbank. The decision allows the bank to cross the 30% threshold and increase its stake without a cap, UniCredit said.
The approval is an important regulatory step, but does not mean the acquisition is complete. Following the completion of the tender offer in July, UniCredit has reached a 48% stake in Commerzbank. The Italian bank expects to receive about 50% of the voting rights and take control by the end of 2026, after the fulfillment of the remaining procedures and conditions.
“The decision represents an important milestone in the acquisition of Commerzbank“, UniCredit said, describing the approval as a confirmation of the European Central Bank's assessment of the deal and the financial position of the Italian group.
Deal for about 45 billion euros
UniCredit needed the approval to acquire the Commerzbank shares offered in the tender offer, valued at about 45 billion euros. The deal would be the largest cross-border banking operation in Europe since the global financial crisis, according to Reuters.
The Italian bank began building a position in Commerzbank more than two years ago. In July, it collected enough shares to influence decisions at the annual general meeting of shareholders, but remained below the 50% threshold that would trigger an obligation to buy out minority investors' shares in Polish bank mBank.
Resistance in Germany
The acquisition is facing resistance from Commerzbank management and the German government. The federal state owns just over 12% of the lender's shares and insists that the headquarters remain in Frankfurt and that jobs and financing for German businesses be protected.
UniCredit CEO Andrea Orcel has presented a plan to boost Commerzbank's profits from the start of the next period, but is postponing the full merger until 2029-2030. After receiving the shares, he can call for an extraordinary shareholders' meeting and changes to the supervisory board and management, without waiting for the regular meeting next year.
Commerzbank continues to say that it prefers constructive dialogue and maintaining its own strategy. The transfer of the proposed shares and the voting rights attached to them remains subject to regulatory requirements.
Sources: reuters.com, investing.com, tagesschau.de