Italy’s UniCredit Wins ECB Approval to Control Germany’s Commerzbank
The approval lets UniCredit raise its stake without limits and move toward control of Commerzbank, a deal that could reshape European banking.
- On Thursday, UniCredit, Italy's second-largest bank, received European Central Bank authorization to take control of German rival Commerzbank after a hostile takeover offer completed in July lifted its stake to 48%.
- UniCredit CEO Andrea Orcel initiated the takeover after years of study, aiming to integrate Commerzbank with Bavarian lender HVB, which the Italian bank has operated in Germany since 2005.
- The ECB authorized UniCredit to exceed the 30% ownership threshold in Commerzbank without upper limits, with the bank expecting to reach 50% of voting rights by the end of the year.
- Once in possession of the shares, Orcel threatened to call a shareholder vote to install new management at Commerzbank, aiming to boost profits starting next year while delaying a full merger until 2029-2030.
- Completion of 'remaining regulatory processes and conditions' is expected by the end of the year, as UniCredit emphasized the ECB's 'positive assessment of the transaction' and confidence in its fundamentals.
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For two years now, the Italian major bank UniCredit has been working for Commerzbank. After a long period of resistance, UniCredit has now taken an important hurdle - and got a green light from the ECB.
UniCredit says receives ECB green light for Commerzbank takeover
By acquiring Commerzbank, valued at 35 billion euros ($39 billion), UniCredit plans to cement its status as a European heavyweight. The deal -- long contested by Commerzbank -- should enable UniCredit to merge Commerzbank with its German subsidiary HypoVereinsbank, acquired in 2005. UniCredit said it had received the authorization from the ECB to "cross the 30% equity participation threshold in Commerzbank AG... and to increase its stake furth…
The major Italian bank UniCredit has received approval from the European Central Bank (ECB) for a larger stake in Commerzbank. This appears to pave the way for UniCredit CEO Andrea Orcel to take control of the German bank. It concerns one of the largest European bank takeovers in years.
For two years, Unicredit has been poking on Commerzbank. With a takeover bid in the summer, it missed a majority. Now, the ECB's supervision gives the Italians the green light.
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