UniCredit returns focus to Commerzbank, boosting ownership to 28% shareholding
UniCredit has advanced its stake in Commerzbank to 28%, potentially enhancing its strategic influence over the German lender and solidifying its position in the European banking sector. This move comes after UniCredit activated the formal approval process to increase its stake beyond the current 9.9%, as reported by Reuters.
By converting its synthetic derivatives into physical shares, UniCredit has secured a solid equity foothold without triggering mandatory takeover rules in Germany, which would apply if its stake exceeded 29.9%. UniCredit has stated it currently has no plans to increase beyond that threshold, indicating an intent to hold a significant but non-controlling stake. This stake gives UniCredit substantial voting rights (~20%) and strategic leverage without committing to a full takeover bid.
Commerzbank, in response, took note of UniCredit's announcement but had no comment, referring to its ongoing strategy implementation and upgrade. The German government, on the other hand, has shown some opposition to a potential takeover. German finance minister Jörg Kukies assumed any attempted takeover of Commerzbank by UniCredit was dead, given the German government's very critical resistance.
Marco Troiano, head of financial institutions at Scope Ratings, stated that UniCredit's stake increase positions the bank to exert greater influence over Commerzbank's management. However, the relationship might focus more on collaboration than consolidation, potentially leading to increased cooperation or joint ventures leveraging UniCredit's broader European network, potentially stabilizing or enhancing Commerzbank’s market position.
In a separate development, UniCredit launched a €10.1 billion bid for domestic rival Banco BPM, signaling a broader strategy to consolidate its position in the European banking sector. The Commerzbank move does not have any impact on the public exchange offer with Banco BPM.
The ECB and Germany's financial regulator BaFin declined to comment on UniCredit's stake increase. Commerzbank labor representatives called UniCredit's stake-building "activist and hostile," while a spokesperson for the German government called UniCredit's move uncoordinated and unfriendly.
In summary, UniCredit’s increased stake enhances its influence and strategic options in Europe, potentially enabling synergies and market power gains, while Commerzbank gains an influential European partner but retains independence under current conditions. The relationship between the two banks remains to be seen as they navigate this strategic shift in their partnership.
UniCredit's enhanced position in the European banking-and-insurance sector, following its acquisition of a larger stake in Commerzbank, could lead to financial synergies and market power. This move in the industry could result in increased collaboration or joint ventures, leveraging UniCritic's broader European network.
UniCredit's strategic steps in the finance sector, such as its stake increase in Commerzbank and the bid for Banco BPM, signal a broader consolidation strategy aimed at solidifying its position in the European banking-and-insurance industry.
