The Italian major bank UniCredit said the ECB’s banking supervisors had allowed it to raise its stake in Commerzbank; the news became known on Thursday evening (Der Spiegel, Die Zeit, Handelsblatt, FAZ, ZDFheute, BILD). Der Spiegel and Die Zeit write “apparently” because the claim comes from UniCredit itself. According to ANSA the permission applies to stakes above 30 percent and without an upper limit (single source). FAZ reports that UniCredit wants to hold around 50 percent of the voting rights by year-end. Handelsblatt recalls that with a takeover offer in the summer it narrowly missed a majority. Bloomberg separately reports that UniCredit is working on hedging German home loans worth over one billion euros (single source).
Commerzbank is one of the big German banks. If a majority of it passes to a foreign group, that changes the German banking market and the debate about the independence of Frankfurt as a financial center (FAZ).
For customers nothing changes today. Whether branches, prices or jobs will be affected, the reports do not answer.
Commerzbank CEO Orlopp told Die Zeit that it was “not per se” her job to prevent a takeover (single source).
FAZ asks what politics can still get for Frankfurt and what will remain of the bank’s German independence.
We are watching whether the ECB confirms the approval itself, what conditions are attached to it and how the federal government reacts. So far the statement comes from UniCredit; the mark of 50 percent of the voting rights appears only in FAZ, the 30 percent threshold only at ANSA.
Der Spiegel · Die Zeit · Handelsblatt · FAZ · ZDFheute · BILD · ANSA · Bloomberg (Oct. 14–15)
ECB apparently allows UniCredit to raise its stake in Commerzbank, the bank wants to hold around 50 percent of the voting rights by year-end
According to the Italian major bank, the ECB’s banking supervision has approved the stake increase. The reports rely on UniCredit’s announcement and cite no statement from the ECB itself. The consequences for Frankfurt and for Commerzbank are open.
The Italian major bank UniCredit is apparently close to taking over Commerzbank. By its own account, the ECB’s banking supervisors have approved its raising its stake in Commerzbank; the news became known on Thursday evening (Der Spiegel, Die Zeit, Handelsblatt, FAZ, ZDFheute, BILD). The Italian news agency ANSA writes that the permission applies to stakes above 30 percent and has no upper limit. So far that appears only there.
UniCredit has been moving closer to Commerzbank for two years (Handelsblatt). With a takeover offer in the summer it narrowly missed a majority (Handelsblatt). According to FAZ it wants to hold around 50 percent of the voting rights by year-end; FAZ calls the approval a central step in the takeover. The reports at hand give no information on possible conditions imposed by the supervisors.
Commerzbank CEO Bettina Orlopp had previously told Die Zeit that it was “not per se” her job to prevent a takeover (Die Zeit, single source). How Commerzbank and the federal government respond to the approval is not stated in the evening reports.
Already in the morning FAZ had asked what the Commerzbank takeover means for Frankfurt. The power struggle seems decided, it writes; now the question is what politics can still get for the location and what remains of the bank’s German independence. Separately, Handelsblatt reports that Frankfurt is slipping in the ranking of financial centers (single source). Bloomberg reports that UniCredit is working on hedging German home loans worth over one billion euros while it expands its presence in Germany (single source).
For customers, the approval changes nothing at first. Whether UniCredit will submit a new offer, how it intends to run the bank, and what that means for branches and jobs, the reports do not answer. The Commerzbank share price after the news is also not confirmed.