German government seeks talks with Unicredit chief Orcel over Commerzbank takeover

Federal government's position: Owner with blocking minority

The federal government still holds a direct stake in Commerzbank – above the blocking minority threshold – via the federal government's financial holding company, following earlier purchases during the coronavirus crisis. The German government thus retains significant influence over the Frankfurt-based institution's most important decisions. The Federal Ministry of Finance had consistently emphasised in the past that it intends to use this influence in a targeted manner.

Lars Klingbeil had already stated after Commerzbank's supervisory board meeting that the German government was watching the expansion of Unicredit's stake very closely. He also warned against a break-up of the bank and a weakening of Frankfurt as a financial center. With the invitation to Andrea Orcel, the Finance Ministry is now stepping up its dialogue with the Milan-based institution.

Political reactions and signals to the market

Unicredit chief Andrea Orcel had recently stated publicly that his institution was open to talks and had great interest in Commerzbank, without however having so far made a concrete takeover offer. The plans are also being closely watched on Commerzbank's supervisory board. Business associations warned against the dominance of foreign major banks in the German market.

From observers' perspective, the meeting is also a signal to the capital market and to other European major banks that may also have cast an eye on Commerzbank. A majority takeover by Unicredit would also have immediate regulatory consequences, as the European Central Bank would have to approve such a step.

For the coming weeks, it is expected that both sides will first sound out each other's positions before possible formal negotiations begin. Until then, the federal government's role as a stabilising anchor within Commerzbank's structure remains unchanged. The Finance Ministry also stressed that it did not want to let go of Germany's banking landscape and would strengthen Germany as a business location.