Unicredit, Deutsche Bank prepares countermove on Commerzbank
Clash of the Titans. Deutsche Bank is ready to take action to counter Unicredit’s acquisition of Commerzbank, and CEO Christian Sewing is reportedly considering several strategies. Among options under consideration include the purchase of the remaining 12% stake in Commerzbank still held by the German governmentas reported by Bloomberg. This intervention would aim to block Unicredit’s expansion and preserve German control over Commerzbank.
On September 11, Unicredit filled the pages of newspapers with the move of the acquisition of 9% of Commerzbank, a transaction with a total value of 1.5 billion euros. Of this share, 4.49% was purchased through an auction organized by the German state, while the remaining 4.51% was acquired on the market. Unicredit’s goal is to create a large European banking group that could dominate in terms of capitalization.
This move has received praise from Christine LagardePresident of the ECB, and Joachim NagelPresident of the Bundesbank. However, neither the German government nor other institutions have yet expressed an official position on the matter. Only the trade unions, represented on the supervisory board of Commerzbank, have put up a wall, hoping the intervention of a French banking group to balance the situation.
In fact, Deutsche Bank’s interest in Commerzbank is not new, and already in 2019 it had attempted to initiate a merger with Commerzbank to form a large German banking group. However, the project foundered due to strong opposition from unions, worried about possible job losses. Now, with Unicredit threatening, Deutsche Bank may revive its plan to thwart Italian expansion and secure a dominant position in the European banking market.
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