UniCredit, an Italian bank, confirmed on Friday that it has received approval from the European Central Bank to purchase up to 29.9% of Commerzbank. The decision on whether to move forward with the acquisition is likely to be deferred until next year.
The ECB's clearance was anticipated due to UniCredit's robust financial position and the banking regulator's favorable view on industry consolidation. This milestone marks a significant advancement towards what could potentially be Europe's largest cross-border deal in the banking sector since the global financial crisis.
The prospect of UniCredit acquiring Commerzbank has triggered discontent in Germany, with the Frankfurt-based bank expressing its commitment to pursuing independent growth.
UniCredit stated, "UniCredit is looking forward to engaging in constructive discussions with the new German government once it is formed." CEO Andrea Orcel reiterated that a complete takeover would only be considered with unanimous stakeholder support.
UniCredit emphasized that while the approval highlights its financial stability and compliance with regulations, various factors will influence future decisions and the timeline. The bank noted that the initial timeline for a potential merger decision is likely to extend beyond the end of 2025.
UniCredit's interest in Commerzbank dates back to 2001, predating its 2005 acquisition of Munich-based HVB. Following unsuccessful expansion efforts in Germany by previous leadership, Orcel surprised Berlin in September by acquiring shares in Commerzbank, gradually securing the right to own 28% of the bank through derivatives.
Before converting the derivatives into shares, UniCredit awaits approval from Germany's competition authority.
Commerzbank acknowledged the ECB's decision, clarifying that UniCredit's status remains that of a shareholder with no operational control. It expressed confidence in its growth-oriented strategy focused on enhancing profitability and value.