UniCredit, Italy's second-largest bank, has acquired a 9% stake in Germany's Commerzbank, with plans to increase its holding to 29.9%, pending approval from the European Central Bank (ECB). This acquisition, which includes a 4.5% stake bought from the German government, signals potential consolidation within the fragmented European banking sector. Commerzbank’s shares surged over 20% following the announcement, reflecting market optimism about UniCredit's ambitions. CEO Andrea Orcel has expressed openness to exploring further mergers, although he ruled out hostile takeovers. The ECB is likely to review UniCredit's application based on financial stability and competitive impact, amid broader political implications for Germany. This strategic move aligns with efforts to enhance competitiveness among eurozone banks against U.S. counterparts.