UniCredit Acquires 9% Stake in Commerzbank, Sparking Takeover Speculation

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UniCredit has acquired a 9% stake in Germany's Commerzbank, positioning itself as one of the largest shareholders in the country’s second-largest bank. The Italian financial institution purchased 4.5% of Commerzbank shares from the German government for approximately €700 million and acquired an additional 4.5% through open market transactions, bringing its total investment to €1.4 billion.

Germany’s government, which held a 16.5% stake in Commerzbank following a bailout during the 2008 financial crisis, reduced its shareholding to 12% after the sale. UniCredit CEO Andrea Orcel mentioned that a possible takeover could be considered at a later stage.

This acquisition has led to reactions in Germany, with unions and some lawmakers raising concerns about potential impacts on jobs and competition with Deutsche Bank. Commerzbank, which plays a crucial role in providing loans to medium-sized companies, held a board meeting to discuss its future direction and strategies to remain independent.

The deal has also renewed discussions about possible consolidation within Europe’s fragmented banking sector. Orcel is expected to seek approval from the European Central Bank to increase UniCredit’s stake in Commerzbank beyond the 10% limit.