The president of Commerzbank sees little chance of an amicable merger of UniCredit, according to Reuters
BERLIN (Reuters) – Commerzbank ( ETR: ) supervisory board chairman Jens Weidmann said there was little chance of an amicable merger with UniCredit following the Italian bank’s surprise purchase of a large stake in the German lender, Handelsblatt newspaper reported.
“It’s like any other relationship: if the start is unsuccessful, it will be difficult,” Weidmann told Handelsblatt in an interview published on Monday.
He also expressed doubt that a hostile takeover in the banking sector could create sustainable value.
“In a merger, it is important that the management first talks to each other in a spirit of trust and develops a common understanding. UniCredit decided against it and surprised us with its entry. This is not a good style,” said Weidmann.
UniCredit now controls about 28% of Commerzbank shares. The Italian lender directly holds around 9.5 percent, and UniCredit also secured access to a total of 18.5 percent through financial instruments.
According to Weidmann, it would be beneficial for Germany’s financial sovereignty to have two large independent private banks, Deutsche Bank (ETR:) and Commerzbank.
A look at HypoVereinsbank and Bank Austria, which were taken over by UniCredit in 2005, shows how banks can develop after losing independence, he said.
“Commerzbank’s footprint in Germany would probably be smaller and Frankfurt’s attractiveness as a financial center would suffer,” Weidmann said, adding that many clients, particularly from the SME sector, would be forced to reorient in response to such a move.
