UniCredit Explores Merger Possibility with Commerzbank

UniCredit has taken a significant stake in Commerzbank, raising its ownership to 21%, making it the largest shareholder ahead of the German government. CEO Andrea Orcel emphasized that this investment is currently just that—an investment—and not a prelude to a takeover, asserting that all options remain open. The German government, which retains a 12% stake, has expressed concerns over UniCredit's approach, with Chancellor Olaf Scholz warning against hostile takeovers. In light of these developments, Commerzbank's CEO Manfred Knof will step down earlier than expected, and CFO Bettina Orlopp will succeed him, reportedly opposing any potential merger with UniCredit. An influential investor in Commerzbank has urged the management to engage in dialogue with UniCredit, suggesting that cooperation could be beneficial. Despite this, Orcel stated that UniCredit will not seek a board seat at Commerzbank as it considers itself a competitor.