UniCredit CEO faces resistance in Germany, shifts focus to Italy with offer for Banco BPM

From Investing.com: 2024-11-29 10:20:38

UniCredit CEO Andrea Orcel faced resistance in Germany for his interest in Commerzbank. A group of German corporate customers warned against a deal, citing UniCredit’s past overhaul of Bavarian bank HVB. Orcel shifted focus to Italy with a 10 billion euro offer for Banco BPM, leaving Commerzbank in limbo.

Orcel discreetly built a stake in Commerzbank, sparking backlash from politicians and industry in Germany. Concerns over job losses and lending to small companies were raised. Despite the shift in focus to Italy, Orcel may still face a battle in Germany. Resistance to a potential takeover remains strong.

UniCredit’s past overhaul of HVB in Germany resulted in massive job cuts and branch closures. Orcel’s move to change HVB’s legal form raised eyebrows. Fears of a similar fate for Commerzbank have hardened resistance to a deal. Germany’s economic and political turmoil adds complexity to the situation.

UniCredit’s successful revamp of HVB led to faster decisions and lower costs. Orcel has focused on boosting returns at UniCredit, driving up share prices. With Germany’s upcoming elections and political uncertainty, Orcel hinted that a Commerzbank takeover may be delayed indefinitely. Buying Banco BPM could help UniCredit compete with Intesa Sanpaolo.



Read more at Investing.com: Unwelcome in Germany, UniCredit CEO zeroes in on Italy By Reuters