Italian bank UniCredit has announced plans to increase its stake in German lender Commerzbank from 9% to 21%, with a request to boost ownership to 29.9% pending regulatory approval. UniCredit believes there is significant value to be unlocked within Commerzbank, either as a standalone entity or within UniCredit. If the deal goes through, UniCredit will become Commerzbank’s largest shareholder, much to the dismay of the German government, which currently owns 12% of the bank and had halted plans to dispose of its stake.
The German government is angered by UniCredit’s secretive approach to acquiring its initial stake in Commerzbank, which was revealed to have been done through derivatives that did not require full disclosure. Despite accusations of secrecy, UniCredit CEO Andrea Orcel has stated that Berlin was informed of the bank’s existing stake before the subsequent acquisition. Unions are concerned that a UniCredit takeover could lead to job cuts and hinder lending to small and medium-sized businesses.
Commerzbank is set to hold meetings this week regarding the potential acquisition, with UniCredit likely dominating the agenda. This move could significantly impact the future of both banks and could potentially create tensions between Italy and Germany. Approval of UniCredit’s increased stake in Commerzbank would mark a significant milestone in the ongoing saga between the two financial institutions.
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