UniCredit has received approval from the European Central Bank (ECB) to acquire up to 29.9% of Commerzbank, marking a significant step toward what could become Europe’s largest cross-border banking deal since the global financial crisis, according to Reuters.
However, the Italian bank indicated it would likely wait until after 2025 before deciding whether to pursue a full acquisition of the German lender.
The ECB’s approval was widely anticipated, given UniCredit’s robust balance sheet and the regulator’s supportive stance on banking consolidation. The green light allows UniCredit to proceed with its plans to build a significant stake in Commerzbank, though the Italian bank emphasised that any further steps would depend on stakeholder support and regulatory conditions.
UniCredit CEO Andrea Orcel has consistently stated that a full takeover of Commerzbank would only be pursued if all stakeholders, including the German government, are supportive.
Frankfurt-based Commerzbank, meanwhile, has expressed its commitment to independent growth and dismissed UniCredit’s stake as a mere shareholder position.
We are convinced of our strategy, which aims for profitable growth and value increase, and we are focusing on its successful implementation.
UniCredit’s interest in Commerzbank dates back to 2001, long before its acquisition of Munich-based HVB in 2005. Previous attempts by UniCredit’s leadership to expand its presence in Germany have failed, making Orcel’s recent moves particularly noteworthy.
In September, UniCredit surprised markets by acquiring shares in Commerzbank and accumulating the right to own 28% of the bank through derivatives. The Italian bank noted that it still requires approval from Germany’s competition authority to convert these derivatives into shares.
UniCredit indicated that its timeline for deciding on a potential combination with Commerzbank has been extended, with a decision unlikely before the end of 2025.
While the approval underscores UniCredit’s financial strength and regulatory compliance, there are still many factors that will determine any further steps and their associated timeline. Our original timeline for deciding on whether to proceed or not with a potential combination is now likely to extend well beyond the end of 2025.
The potential merger between UniCredit and Commerzbank represents a landmark moment for European banking consolidation. If successful, it could reshape the competitive landscape of the industry, particularly in Germany, where Commerzbank is one of the largest financial institutions.
