UniCredit CEO remains persistent in pursuit of Commerzbank acquisition.
UniCredit's Persistent Pursuit of Commerzbank Acquisition
The proposed acquisition of Commerzbank by UniCredit remains a contentious issue, with ongoing negotiations and resistance from the German government and bank's management.
In a recent meeting, UniCredit CEO Andrea Orcel reaffirmed the company's ongoing interest in Commerzbank, stating that they currently own a 30% stake in the German bank. Orcel emphasized that their politeness and deliberate approach do not diminish their ownership stake.
This stance comes after UniCredit purchased a 28% stake in Commerzbank last year with ambitions to merge Germany's second-largest listed bank with its Munich subsidiary HypoVereinsbank (HVB). However, the plan has faced opposition from both Commerzbank and the German government.
Orcel maintained that UniCredit is not in a rush and is prepared to wait for the right opportunity to engage with the German government. The available options still pertain, including maintaining the Commerzbank stake, selling it at a profit, or initiating takeover discussions.
Previously, Orcel had indicated that a decision on Commerzbank would not be imminent, not earlier than next year. When asked about the possibility of Commerzbank forming alliances with German competitors as a defensive measure, Orcel noted it as a potential risk, but added that Commerzbank has become more expensive due to UniCredit's interest.
Meanwhile, UniCredit has decided to withdraw from its proposed takeover of Milan-based regional bank Banco BPM due to unfavorable conditions set by the Italian government. The offer expiration date is set for July 23, and while UniCredit has filed a lawsuit against these conditions, the court decision is not expected before the offer expires.
The success of UniCredit's acquisition bid for Commerzbank will depend heavily on regulatory patience and political resolve, as both German and European authorities are involved in the process. The resistance from unions and politicians in Germany and Italy underscores the challenges in achieving pan-European banking consolidation.
"Wait, wait, wait. UniCredit's persistent pursuit of Commerzbank, a significant player in the finance industry and business, remains ongoing despite resistance from the German government and bank's management. Andrea Orcel, UniCredit's CEO, has maintained a deliberate approach, stating that they currently own a 30% stake in Commerzbank and are prepared to wait for the right opportunity to engage with the German government.
