UniCredit increases Commerzbank stake to 34.35 percent

In exchange, UniCredit is offering 0.485 of its own shares for each Commerzbank share. According to Commerzbank, the offer is below the Frankfurt-based bank's current stock price. The average analyst price target is reportedly 41.50 euros – around five euros above the offer price.

Background: Entry via the Federal Government

UniCredit entered Commerzbank in September 2024 through the sale of Commerzbank shares by the German federal government. At that time, the Italian banking giant acquired an initial significant stake in the Frankfurt-based financial institution. The stake has been gradually increased since then.

Resistance from Frankfurt

UniCredit CEO Andrea Orcel has been advocating for the advantages of larger European banks for months. He increased his offer on May 5th – the day the acceptance period for Commerzbank shareholders began. The management, works council, and employees of Commerzbank reject Orcel's actions, which they view as "hostile."

Commerzbank itself is promoting its independent path, stating that it can create more value on its own. Management also points out that the offer is below the current stock price and that several analysts have issued higher price targets.

Potential Consequences for Employees

Should a merger with the UniCredit subsidiary HypoVereinsbank (HVB) occur, contrary to expectations, an estimated 10,000 to 11,000 jobs would be at risk. This would represent more than a quarter of the workforce of the combined institution.

UniCredit is the parent company of Bank Austria and is headquartered in Milan. In Germany, HypoVereinsbank is part of the group. Commerzbank is one of Germany's largest banks and is listed on the Dax. The acceptance period for the takeover offer runs until mid-June.

What Else is Possible

By crossing the 30 percent threshold, UniCredit gains, among other things, further information and voting rights. Observers interpret this move as a signal that the Italians intend to significantly increase their influence at Commerzbank. Commerzbank is reviewing the offer and has urged its shareholders not to accept it.

It remains open whether Commerzbank's defense will be successful. UniCredit could further expand its position within the remaining timeframe and with additional instruments, without a formal takeover being necessary. Commerzbank, on the other hand, is relying on discussions with political decision-makers and its independence.