UniCredit has acquired a 9% stake in Commerzbank and is considering an integration between the two institutions. Italy’s second-largest bank has invested up to 1.4 billion euros, making it the second-largest shareholder after the Berlin government, and has acquired 4.49% of the shares on behalf of the German state and the rest through an expedited procedure on the market. UniCredit also said it plans to request authorization to exceed 9.9% of the capital “if necessary.”
The announcement sent the German institution’s securities up more than 15% in first-time trading on the Frankfurt Stock Exchange. On Tuesday, Berlin announced plans to sell a 4.5% stake in Commerzbank, the first step in Germany’s second-largest bank’s withdrawal from the capital after it was rescued from bankruptcy in the 2000s.
The Federal Finance Agency (Finanzagentur) said on Tuesday that the state will reduce its stake in Commerzbank from 16.5% to 12%. Finanzagentur announced at the beginning of September that it was withdrawing from the institution, which was rescued from bankruptcy during the 2008-2009 financial crisis when the state had to commit around 18 billion euros to take a stake in the bank and provide guarantees. “Even after the transaction is completed, the Federal Republic of Germany will remain the largest shareholder in Commerzbank,” Finanzagentur said.
Integration hypothesis
A potential integration between the two institutions is being considered, according to the Financial Times, citing people familiar with the discussions. People familiar with Commerzbank’s internal discussions told the leading British newspaper that the German lender had not previously been contacted by UniCredit and that the bank became aware of the transaction through filings with regulators on Wednesday morning, but added that Commerzbank would consider UniCredit’s plans with an open mind.
In a brief statement, the German lender said it “took note of UniCredit’s announcement” and that the move was “a testament to the progress made and Commerzbank’s stance.” The bank said its boards “will continue to act in the interests of all our shareholders and key stakeholders, such as employees and customers,” but declined to comment further. UniCredit said it “will cooperate with Commerzbank AG to explore opportunities to create value for all stakeholders of both banks.”
150 years of history
With a history spanning 150 years, Commerzbank is the leading bank for German small and medium-sized businesses and a strong partner to around 25,500 corporate client groups and around 11 million private clients and small businesses in Germany. Commerzbank handles around 30% of Germany’s foreign trade and is present internationally in the corporate sector in over 40 countries. For example, its Polish branch mBank is an innovative digital bank serving around 5.7 million private and corporate clients, mainly in Poland, as well as in the Czech Republic and Slovakia.
Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
