UniCredit has acquired a 4.5% stake in Commerzbank from the
German government. The purchase was made after discussions between the Italian
bank and the German authorities.

UniCredit’s CEO, Andrea Orcel, stated in an
interview with the Italian newspaper Il Messaggero that the German government
views UniCredit as a reliable and suitable investor.

UniCredit Becomes Largest Shareholder

Orcel mentioned that he had travelled frequently between
Germany and his family’s holiday location this summer as part of the
negotiations. He emphasized that the transaction reflects trust in UniCredit’s
stability and intentions.

The bank had already acquired a similar stake in
Commerzbank from the market, making it the largest private shareholder in the
German bank.

Despite UniCredit’s increasing involvement, Orcel ruled out
the possibility of a hostile takeover or unsolicited bid for additional shares.
He described such actions as aggressive, saying they are not part of
UniCredit’s current strategy.

Instead, the bank will seek regulatory approval
to potentially increase its stake to 29.9%, the maximum threshold before
launching a full takeover.

It must be said now that the German government made a serious mistake when it sold its shares in Commerzbank to UniCredit, in terms of craftsmanship of course, but above all in terms of the result, the now possible takeover of Commerzbank by UniCredit@Bundeskanzler #Commerzbank pic.twitter.com/BaeApcnvW6

— EU Citizen 🇪🇺 🇩🇪 🎼 🎸 (@HeineGiessen) September 16, 2024

Sale Sparks Controversy in Germany

The outcome of the sale has caused some controversy in
Germany. Reports suggest that the government did not anticipate UniCredit’s
interest, though the bank ultimately emerged as the highest bidder in the
government’s auction for the stake.

In a separate interview with the German newspaper
Frankfurter Allgemeine Zeitung (FAZ), Orcel confirmed that UniCredit is not
under pressure to raise its stake in Commerzbank. He also noted that the bank
may consider selling its current holdings in the future if conditions change.

This article was written by Tareq Sikder at www.financemagnates.com.

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