In a bold move likely to escalate tensions between Italy and Germany, UniCredit SpA has more than doubled its stake in Commerzbank AG, positioning itself as the bank’s largest shareholder.
The Italian lender, led by CEO Andrea Orcel, disclosed on Monday that it had acquired derivatives linked to an additional 11.5% stake in Commerzbank, adding to the 9% it already holds. This strategic move pushes UniCredit’s ownership of the German bank to approximately 21%, overtaking the German government, which currently holds around 12%.
The timing of UniCredit’s stake increase comes just days after Berlin indicated its opposition to a potential takeover, stressing that Commerzbank’s strategy is focused on maintaining independence. The German government, blindsided by UniCredit’s acquisition of an earlier stake from the state, had paused its planned sale of further shares.
UniCredit’s maneuver has sparked concern among German politicians and union leaders, who fear the impact of a potential takeover on the German banking sector and its labor force. Friedrich Merz, leader of the opposition Christian Democratic Union, criticized the Italian bank’s actions, calling them a “disaster for Germany’s banking market.” German Chancellor Olaf Scholz also condemned the move, referring to it as an “unfriendly attack” and emphasizing the government’s stance against hostile takeovers.
Commerzbank’s shares rose by as much as 0.8% following the announcement, while UniCredit saw its stock decline by 3% in Milan. The German bank has gained approximately 24% since UniCredit first disclosed its initial stake earlier this month. Despite the German government’s opposition, Orcel has reiterated that he is not interested in pursuing a hostile takeover and is committed to maintaining transparency.
The move is likely to fuel further political and financial debates in Germany as UniCredit seeks regulatory approval from the European Central Bank to raise its stake to 29.9%.
With input from Bloomberg, Reuters, and Financial Times.
