UniCredit Increases Stake in Commerzbank, Germany's Leading Banking Group.

UniCredit has increased its stake in Commerzbank, a leading German banking group. Commerzbank offers a range of financial services, including retail banking, private banking, market and investment banking, and other specialized services. The group managed EUR 440.5 billion in current credits and EUR 310.9 billion in current deposits as of 2024.

Title: UniCredit's Stake in Commerzbank Faces Opposition from German Official

UniCredit has recently increased its stake in Commerzbank, a leading German banking group, but this move has encountered significant resistance. Commerzbank, which offers a range of financial services including retail banking, private banking, market and investment banking, and specialized services, has seen UniCredit's push for a tie-up meet with fierce opposition from German officials and the bank's own board.

As of 2024, Commerzbank managed EUR 440.5 billion in current credits and EUR 310.9 billion in current deposits [2]. UniCredit's recent attempts to merge with Commerzbank have been met with resistance, particularly from Sascha Uebel, deputy chair of Commerzbank's supervisory board. Uebel has publicly stated that UniCredit's CEO, Andrea Orcel, should "sell his shares, take his profits and go home" [1].

Orcel has been persistent in his pursuit of a merger, sending letters to German Chancellor Friedrich Merz and other officials to discuss the deal. However, the Verdi labour union has also expressed concerns, stating that its worries have not been addressed [1]. Despite UniCredit's attempts to highlight the economic, social, and political benefits of a tie-up, Commerzbank's board and the German government remain steadfast in their opposition.

Institutional investors and hedge funds have also been active in their positions in Commerzbank. Principal Financial Group Inc., for instance, decreased its position in Cummins Inc. (NYSE:CMI) by 1.4% in the first quarter, indicating a shift in investment focus [2]. This move could suggest a broader trend in the financial sector, where investors are reassessing their stakes in light of ongoing regulatory and market changes.

The ongoing tension between UniCredit and Commerzbank underscores the complex dynamics of mergers and acquisitions in the banking sector. As UniCredit continues to push for a tie-up, the future of this relationship remains uncertain, with significant implications for both banks and the broader European financial landscape.

References:
[1] https://www.reuters.com/business/finance/commerzbank-official-tells-unicredit-ceo-sell-go-home-2025-07-04/
[2] https://www.marketbeat.com/instant-alerts/filing-principal-financial-group-inc-has-29922-million-holdings-in-cummins-inc-nysecmi-2025-07-04/