MILAN/FRANKFURT, March 16 (Reuters) – UniCredit made a low, unsolicited offer for Commerzbank on Monday to pressure it into negotiating a merger and break an 18-month deadlock over what would be one of the “largest European cross-border banking deals since the 2008 financial crisis.”
The Italian bank does not expect its offer, valued at around 35 billion euros ($40 billion), to convince many shareholders. But the move adds pressure and gives UniCredit, which already owns almost 30% of Frankfurt-based Commerzbank, the freedom to acquire more shares on the open market in 2027.
While governments across Europe are determined to have a say in banking consolidation while protecting jobs and the independence of their local industry, politicians are key players in a saga that UniCredit started when it bought a stake in Commerzbank in September 2024.
These are some of the key players and their position:
THE BANK EXECUTIVES
* Andrea Orcel, executive director of UniCredit and architect of the agreement. The former investment banker has been frustrated by slow progress, but Monday’s bid shows how determined he is to press ahead, after failing to buy an Italian lender last year. * Bettina Orlopp, chief executive of Commerzbank, has long defended the bank’s independence, saying on Monday: “This measure is not coordinated with us.”
THE GOVERNMENT FIGURES
* Friedrich Merz, chancellor of Germany, which owns almost 13% of Commerzbank, reiterated on Monday that Germany wants an independent Commerzbank, opposing a merger that is consistent with the stance of his predecessor. * Lars Klingbeil, German Finance Minister, oversees government involvement and his party wants to protect jobs. He called UniCredit’s advances “hostile.” * Giorgia Meloni, Italian prime minister, has never expressed support for UniCredit CEO Andrea Orcel’s foreign expansion plans, speaking only of the government’s vision for the domestic banking market. * Giancarlo Giorgetti, Italy’s finance minister, actively fought UniCredit’s bid for smaller rival Banco BPM, contributing to its failure.
THE REGULATORS
* The European Central Bank, which favors European integration, has authorized UniCredit to cross the 10% threshold and reach 29.9%. You need to exceed other thresholds, such as 30% and 50%. * The EU Commission, as the competition watchdog, would be involved in evaluating the deal if UniCredit were to acquire a controlling majority of Commerzbank.
LABOR REPRESENTATIVES
* German union Verdi has already suffered staff cuts at Commerzbank and is fiercely opposed to a takeover. Commerzbank employs almost 40,000 people. * Sascha Uebel, chairman of Commerzbank’s works council and deputy on the bank’s supervisory board, told German news agency DPA that UniCredit’s latest move was shameful and hostile.