Particle.news
Download on the App Store

UniCredit Escalates Commerzbank Takeover With Overhaul Plan

German opposition signals a tough path for cross-border banking deals.

Overview

  • UniCredit unveiled its “Commerzbank Unlocked” blueprint Monday, promising a refocus on Germany and Poland, investment in technology and staff training, and net profit of about €5.1 billion by 2028.
  • The bid values Commerzbank at roughly €35 billion with an offer near €30.80 per share, while the stock traded around €36.47 and UniCredit shares fell about 2 percent in Monday trading.
  • Commerzbank’s leaders rejected the plan as a poor deal versus their strategy, and the German government, which holds about 12 percent, voiced resistance to a takeover.
  • UniCredit, already the largest shareholder, says it expects to lift its roughly 26 percent stake above the 30 percent mark that under German rules triggers a mandatory full offer.
  • If it secures control, UniCredit says it would run Commerzbank as a separate bank for about 18 months before a possible combination with HypoVereinsbank, a move watched as a bellwether for European banking consolidation.