UniCredit has secured the approval of the European Central Bank (ECB) for stake acquisition of up to 29.9% in Germany’s Commerzbank.
The Italian banking major believes that this approval highlights its “financial strength and regulatory compliance”.
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However, additional approvals, including from the Germany Federal Cartel Office, are needed before converting the derivative-held shares into physical shares.
The stake increase to 29.9% lies just under the 30% mark that would trigger a mandatory takeover bid under German rules.
UniCredit said that the timeline on a potential combination was likely to extend “well beyond the end of 2025” and seeks a “constructive dialogue” with the new German government once it is established.
The Italian bank’s current interest in Commerzbank includes a 9.5% direct stake and 18.5% through derivatives.
In a statement, UniCredit said: “As shareholder, we are pleased that our investment has driven some positive change at Commerzbank, which, together with the recent more optimistic view on German macro, has driven a substantial increase in the bank share price.
“However, only significant time will reveal if the plan is executable and hence determine whether such price appreciation is justified and sustainable.”
Commerzbank, which was state-rescued in 2009, emphasised its strategy and independence, stating that the ECB’s decision does not alter UniCredit’s role as a shareholder, reported Reuters.
Following unsuccessful efforts by his predecessors to expand UniCredit’s presence in Germany, CEO Andrea Orcel made a decisive move in September by outbidding competitors in a government sale of Commerzbank shares, effectively doubling the stake he had previously acquired on the market, the news agency said.
Subsequently, he secured the right to own 28% of the bank through derivatives.
Earlier this month, UniCredit completed a €376m acquisition of Aion Bank and Vodeno, following necessary approvals.
Announced in July 2024, this transaction aims to bolster UniCredit’s digital banking presence.
Vodeno, a Polish fintech, specialises in banking-as-a-service, while Aion Bank operates as a digital bank with a subscription model.
Both were previously under Warburg Pincus since 2022, collaborating on embedded banking services in Europe.
