Unicredit's acquisition attempt faces criticism from Commerzbank - Criticizes Commerzbank of Unicredit's acquisition plan
In a move to reassure shareholders and maintain its independence, German bank Commerzbank has reaffirmed its strategy of driving growth and profits. This decision comes amidst UniCredit's attempts to increase its stake in Commerzbank and the intervention of the Federal Cartel Office.
Commerzbank's deputy chair, Sascha Uebel, has expressed hardened opposition to a takeover by UniCredit. Despite UniCredit's recent move to double its equity stake to approximately 20%, Uebel has stated that this does not change his stance but has made him "perhaps a little more determined" against it.
UniCredit's acquisition plans have sparked significant political backlash in Berlin, with UniCredit CEO Andrea Orcel seeking meetings with the new German government to address these concerns.
The German Federal Cartel Office has approved UniCredit's ability to raise its stake in Commerzbank to 29.9%, a move that avoids triggering a mandatory takeover bid but still leaves the door open for future antitrust scrutiny if UniCredit seeks full ownership. The Cartel Office's decision is based on its assessment that competitors in retail, SME, and export finance markets will maintain sufficient market presence, even with UniCredit's increased stake.
UniCredit has achieved this stake increase through the conversion of some stock options into Commerzbank shares. The bank plans to convert the remaining synthetic position of around nine percent into physical shares, aiming to reach around 29 percent of Commerzbank's voting rights without crossing the 30% threshold that would mandate a full takeover bid under German law.
The leadership of Commerzbank, employees, and the German government have expressed opposition to a takeover by UniCredit. The German government's position on the potential takeover is clear: it rejects the unfriendly approach and supports Commerzbank's independence. The Federal Ministry of Finance has spoken out against UniCredit's renewed approach towards a potential takeover of Commerzbank.
Despite the ongoing developments, Commerzbank's spokeswoman has stated that their standalone business model works, based on recent business results. The German government continues to hold shares in Commerzbank due to the bank's state rescue in 2008, and for the time being, there is no specific timeframe for selling its remaining stake.
In conclusion, Commerzbank is steadfast in its commitment to growth and profits, and the bank's leadership, employees, and the German government are united in their opposition to a takeover by UniCredit. The Federal Cartel Office's approval of UniCredit's stake raise to 29.9% adds a layer of complexity to the situation, but Commerzbank's resilience and the German government's support suggest that the bank is well-equipped to navigate these challenges.
In light of the continued opposition from Commerzbank's leadership and the German government, aid for the community and industry might be sought to bolster the bank's resilience, while finance professionals and business advisors could be consulted to find alternate strategies for growth and profits, protecting Commerzbank's independence.
The approval of UniCredit's stake raise by the Federal Cartel Office has raised concerns about potential antitrust issues in retail, SME, and export finance markets. In response, community aid and aid for the construction of new buildings could be proposed to strengthen competitor presence and maintain a balanced market, particularly in sectors such as retail and SME financing.
