UniCredit has become the second-largest shareholder of Commerzbank, acquiring a 9% stake, half of which was purchased from the German government for approximately 1.4 billion euros. CEO Andrea Orcel has expressed strong support for a potential merger, claiming it could significantly benefit shareholders and strengthen the banking sector in Germany, especially for small and medium-sized enterprises. Orcel noted the strategic complementarity between the two banks, as they have little overlap in operations, which could lead to cost savings and enhanced services. The German government still holds a 12% stake in Commerzbank and aims to divest further, following the bank's recovery and improved profitability post-financial crisis. However, there are concerns from labor unions regarding potential job losses stemming from any merger. UniCredit plans to actively engage with Commerzbank’s management to explore ways to enhance value, regardless of merger discussions.