Germany decries UniCredit bid for Commerzbank 'unfriendly'

UniCredit has escalated its stake in Commerzbank to 21% and has submitted a request to increase its ownership to nearly 30%. This follows the Italian bank’s acquisition of shares from the German government, which had previously rescued Commerzbank during the 2008 financial crisis. The German government remains committed to maintaining its stake, viewing Commerzbank as a stable entity that should pursue an independent strategy. This tension highlights broader concerns about foreign influence in critical sectors of the economy, particularly in light of Germany’s historical involvement in Commerzbank’s financial stability.

Background on the Stake Increase

• UniCredit’s Strategy: The Italian bank believes there is significant value to be unlocked within Commerzbank, either as an independent entity or as part of UniCredit. This perspective has driven its recent investment decisions.
• Government Response: The German government has reiterated its intention to retain its shareholding in Commerzbank, emphasizing the bank’s independence and profitability.

Market Reactions

Following the announcement of UniCredit’s increased stake, shares of Commerzbank experienced volatility. While there was an initial decline in response to the government’s stance, the market showed signs of recovery as news of UniCredit’s stake increase circulated. The situation remains dynamic, with ongoing discussions in Berlin regarding the future of Commerzbank’s ownership structure.