UniCredit Becomes Largest Shareholder in Commerzbank with 20% Stake

UniCredit boosts its stake in Commerzbank to 20% by converting derivatives, making it the largest shareholder, surpassing the German government. UniCredit aims to increase its equity holding to about 29%. CEO Orcel may wait until 2027 to decide on a full takeover offer due to increased costs.

Orcel’s plan to merge Commerzbank with UniCredit’s HVB to create a banking giant in Germany faces opposition from Berlin. Recent regulatory approvals allowed UniCredit to convert derivatives into shares. Orcel pushes for a deal to create a European banking champion, despite government efforts to maintain Commerzbank’s independence.

German officials urge Orcel to direct proposals to Commerzbank’s management, emphasizing support for the bank’s independence. UniCredit also pursues Banco BPM amid stringent conditions imposed by the Italian government on a potential takeover. The move to increase the stake in Commerzbank was not agreed upon by the bank.

Read more at Yahoo Finance: Unicredit increases Commerzbank stake to 20% through derivatives