German finance ministry spokesperson says government continues to oppose UniCredit's approach for Commerzbank

German finance ministry spokesperson says government continues to oppose UniCredit's approach for Commerzbank

The German finance ministry has once again expressed its opposition to UniCredit's approach for acquiring Commerzbank, emphasizing concerns over potential job losses and branch closures. The ministry's stance follows UniCredit's recent moves to increase its stake in the German bank, nearing the threshold for a mandatory takeover bid.

UniCredit has been steadily increasing its ownership in Commerzbank, converting part of its synthetic derivative position into physical shares. As of July 2025, the Italian bank holds approximately 26% of Commerzbank's shares, with plans to convert the remaining financial instruments to reach a 29% stake [1]. This move brings UniCredit closer to the 30% threshold, at which point it would be legally required to make a formal purchase offer to the other shareholders [2].

The German finance ministry's spokesperson highlighted that the government remains committed to maintaining a strong and independent Commerzbank. The ministry has previously raised concerns that a merger with UniCredit could lead to significant job cuts and branch closures, which would negatively impact the German economy, particularly SME lending [1].

UniCredit's CEO, Andrea Orcel, has been undeterred by the resistance, emphasizing the potential benefits of a cross-border merger in retail and SME banking. However, the German government has been adamant in its opposition, with Chancellor Friedrich Merz (CDU) reaffirming the federal government's commitment to a "strong and independent Commerzbank" [2].

Investors and financial professionals must closely monitor the developments in this ongoing saga. The potential for a merger between Commerzbank and UniCredit's German subsidiary, Hypovereinsbank (HVB), could create a regional banking powerhouse with €1.5 trillion in assets. However, the feasibility of such a merger hinges on resolving valuation gaps, capital constraints, and political hurdles [1].

The German government's opposition underscores a broader tension between European integration and national sovereignty. Any attempt to cross the 30% threshold would likely face antitrust scrutiny and potential conditions such as branch divestitures or public-sector oversight [1]. Investors must balance the potential rewards of European banking consolidation with the risks of regulatory and political interference.

References:

[1] Reuters. (2025, August 25). UniCredit boosts equity stake in Commerzbank to about 26%. Retrieved from https://www.reuters.com/business/finance/italys-unicredit-boosts-equity-stake-commerzbank-26-2025-08-25/
[2] MarketScreener. (2025, July 2). Unicredit increases direct stake in Commerzbank edging toward takeover offer. Retrieved from https://www.marketscreener.com/news/unicredit-increases-direct-stake-in-commerzbank-edging-toward-takeover-offer-ce7c50dbd18bf424