UniCredit’s surprise stake in Commerzbank lowers hopes of friendly merger – Investing.com reports
Investing.com — The chances of an amicable merger between Commerzbank (ETR: ) and UniCredit appear slim, following the Italian bank’s unexpected acquisition of a significant stake in the German lender.
This was stated by Jens Weidmann, Chairman of the Commerzbank Supervisory Board, in an interview published in Monday’s Handelsblatt.
Weidmann expressed skepticism about the possibility of creating lasting value through a hostile takeover of the banking sector. He emphasized the importance of involving management in discussions based on trust and developing a common understanding during the merger.
According to Weidmann, UniCredit bypassed this approach, surprising them with its entry, which he deemed inappropriate.
UniCredit currently holds around 28% of Commerzbank shares. The Italian bank directly owns about 9.5 percent, and has secured access to an additional 18.5 percent through financial instruments.
Weidmann suggested that it would be beneficial for Germany’s financial sovereignty to have two large independent private banks, Deutsche Bank (ETR:) and Commerzbank.
He highlighted the examples of HypoVereinsbank and Bank Austria, which were bought by UniCredit in 2005, as an illustration of how banks can develop after losing their independence.
Weidmann expressed concern that Commerzbank’s presence in Germany could be reduced and that Frankfurt’s appeal as a financial center could be threatened if the bank loses its independence.
He added that such a development could force many clients, especially from the SME sector, to reconsider their banking relationships.
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