Merz reiterates opposition to UniCredit takeover of Commerzbank

Merz reiterates opposition to UniCredit takeover of Commerzbank

German Chancellor Friedrich Merz has once again voiced his opposition to UniCredit SpA’s bid to take over Commerzbank AG, citing concerns over the transaction’s methodology and potential financial risks. Merz made these remarks during a press conference in Berlin on July 18, 2025 [1].

Merz’s reservations are twofold. Firstly, he criticized UniCredit’s approach as “unfriendly” towards both Commerzbank and the Federal Republic of Germany. Secondly, he expressed concern about the potential risks to the financial market due to the structure of the combined institution’s balance sheet. Until these issues are satisfactorily resolved, Merz stated that his opinion will not change.

UniCredit’s CEO, Andrea Orcel, is undeterred by the resistance and has set a deadline of 2027 to decide whether to make an offer for Commerzbank. Despite the opposition, UniCredit has been increasing its stake in Commerzbank. As of now, UniCredit holds around 20% of Commerzbank’s shares, making it the largest shareholder ahead of the German government, which retains 12% [1].

Merz also highlighted that the transaction was not flagged in advance to either Berlin or Commerzbank, which he described as “unfriendly behavior” that his government does not support. UniCredit has stated that it intends to boost its equity holding to 29% by converting its remaining synthetic position, which would put it just below the threshold that would require an offer to remaining shareholders [1].

The opposition to the merger comes from both Merz’s new ruling coalition and the previous government under Social Democrat Olaf Scholz. SPD Finance Minister Lars Klingbeil has also urged Orcel to abandon his pursuit of Commerzbank, noting its importance as a lender for Germany’s small- and mid-sized companies [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-07-18/merz-warns-of-financial-risks-from-unicredit-commerzbank-tie-up