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Merz Opposes UniCredit Moves in Letter to Commerzbank Staff

Introduction

The German government has expressed its strong opposition to UniCredit's plans to increase its stake in Commerzbank, Germany's second-largest bank. Chancellor Friedrich Merz's stance has been seen as a significant indication of governmental resistance to foreign control.

Context

In a letter dated May 26 and later shared on LinkedIn, Chancellor Merz informed Commerzbank staff that UniCredit's approach toward acquiring shares in the bank is unacceptable. He emphasized the importance of safeguarding systemically crucial institutions like Commerzbank AG, arguing that a takeover would significantly impact medium-sized businesses and their reliance on bank lending.

Developments

German Finance Minister Lars Klingbeil supported Merz's statement, acknowledging its importance during a press conference in Berlin alongside Swedish Finance Minister Elisabeth Svantesson. He confirmed ongoing political discussions regarding the matter.

UniCredit currently holds a stake of approximately 28% in Commerzbank, secured through financial transactions involving derivatives, and recently obtained European Central Bank approval to increase this stake to 29.9%. Under German law, surpassing the 30% threshold requires a buyout offer. While UniCredit has described its stake as a financial investment, it has postponed any decisions on a full takeover until 2026-2027, insisting that this would be the most beneficial outcome.

Klingbeil acknowledged the political weight of Merz's statement, indicating that results from their discussions would be made public when available. There are growing concerns among politicians in Berlin about the potential loss of one of Germany's remaining major commercial banks and the implications of closer ties to debt-stricken Italy.

Conclusion

The German government’s firm opposition to UniCredit's stake increase in Commerzbank highlights the challenges of foreign investment in key national institutions. As political discussions continue, the outcomes may shape the future of Germany's banking landscape.